How bad are Germany’s economic problems? One commonly used indicator is the number of company insolvencies and recent figures have produced worrying headlines.
According to a study by the Halle Institute for Economic Research (IWH), the insolvency rate among partnerships and corporations in Germany was 80% higher in June than in an average June between 2016 and 2019, the period before the COVID-19 pandemic.
Sole proprietors, freelancers and very small businesses were not included in these figures because they are considered less relevant to the overall labor market. Partnerships and corporations account for about 90% of jobs affected by insolvencies and 95% of the claims involved.
The number of company bankruptcies in the second quarter of…