Germany to be hit by giant wave of bankruptcies
Germany to be hit by giant wave of bankruptcies

Following the second outbreak of the COVID-19 pandemic, Germany may be battered by a wave of bankruptcies. The restrictions that have been introduced when the coronavirus started its march on Europe and measures that could be implemented in the future are likely to increase the number of bankruptcies in Germany. Remarkably, the company insolvencies in the country are relatively low. Prompt support from the government helped to avoid widespread bankruptcy. However, a new wave of the pandemic in the country may cause substantial damage to local businesses. Crifbürgel experts suggest that above 29,000 German firms are likely to collapse this year, that is 54% more compared to 2019. Therefore, if this pessimistic forecast becomes a reality, Europe’s top economy will hit the record set during the 2008-2009 global financial crisis. Back then, around 34,000 businesses went bankrupt. This time, the at-risk economic sectors are tourism, public catering, and entertainment. According to Crifbürgel, the number of corporate bankruptcies is expected to soar. Moreover, the current crisis will have an adverse impact on car manufacturers, exhibition business, and export-dependent industries.

Published: 2020-06-03 16:16:12 UTC
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