Corporate insolvencies in Germany have surged to their highest level in two decades, according to economic researchers. During the first three months of 2026, the Leibniz Institute for Economic Research Halle (IWH) recorded 4,573 insolvencies among partnerships and corporations.
"This represents the highest level since the third quarter of 2005, meaning insolvency numbers now exceed even those seen during the major financial crisis of 2009," the researchers announced on Thursday.
March witnessed a particularly dramatic increase in corporate bankruptcies. The IWH analysis revealed a sharp 17 percent jump compared to February, reaching 1,716 insolvencies. When compared to an average March from the pre-pandemic years, 71 percent more companies filed for insolvency. "The last time the monthly number of insolvent partnerships and corporations was higher was in June 2005," the IWH stated.
Despite the substantial rise in bankruptcy numbers during March, the impact on employment proved relatively limited. According to the IWH Insolvency Trend, approximately 14,000 jobs were affected in the largest ten percent of insolvent companies. This figure represents 40 percent fewer affected positions compared to February.
"The strong increase in the number of insolvencies is therefore attributable to an accumulation of bankruptcies among smaller companies," the researchers explained.
Overall, the first quarter saw approximately 54,000 jobs affected by corporate insolvencies, the highest figure since the third quarter of 2020. That period had witnessed several major bankruptcies, including Esprit, Vapiano, and Wirecard. Most recently, the processing industry has accounted for the largest share of insolvencies, according to researchers.
The forecast for the coming months remains decidedly pessimistic, according to the IWH. "Our early indicators leave little room for optimism regarding the second quarter of 2026," explained Steffen Müller, head of IWH insolvency research. "We continue to expect very high insolvency numbers. It is possible that the very high figures from March will repeat themselves."
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