Ifo: One in 12 German Companies at Risk of Insolvency
The Munich-based Ifo Institute said roughly 8.5 percent of German companies, equivalent to one in 12, are at risk of insolvency. Industrial firms remain under pressure from high energy costs and weak export orders.
The Munich-based Ifo Institute said roughly 8.5 percent of German companies, or one in 12, are at risk of insolvency. According to data shared by Anadolu Agency, the risk is more pronounced among small and mid-sized industrial firms.
The report shows that industrial output in Europe's largest economy has fallen visibly compared with last year. Ifo researchers point to high energy costs, weak export orders, and uncertainty from the Iran war as factors squeezing corporate balance sheets at the same time.
The German government argues that the investment package announced earlier this year will start to show its effects in the coming quarters. Ifo researchers, however, warn that insolvency rates could rise further, especially in the automotive supply chain, if financing costs remain elevated for a prolonged period.
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