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Bankruptcy alarm in Germany, in 2023 a business in the country was closed every three minutes

2024-06-10 13:56:50Kosova&Bota SHKRUAR NGA REDAKSIA VOX

Bankruptcy alarm in Germany, in 2023 a business in the country was closed every

The German media report on frightening signals from the most important industries in the country. According to them, the sector is an alarming situation. Data from 2023 show that 176,000 businesses closed: one every three minutes.

The industry is sending alarming signals in Germany in terms of the number of businesses that have closed. Sectors such as the construction industry are particularly affected, but there are also problems in the manufacturing sector - currently 5.5 million jobs. The last time so many companies closed was in 2004. The number of bankruptcies is increasing from 2020 compared to 2022: the number increased by another 2.3%, according to the prestigious Bild.

The trend extends to all industries and sizes in Germany, according to experts from the Leibniz Center for European Economic Research – ZEV: 20,000 construction companies, 37,000 trading companies, 51,000 companies in consumer services, 11,000 from the manufacturing sector. So +8.7%, the highest level since 2004.

The main reason for the closure is that the company is no longer economically viable. The problems are especially evident in the manufacturing industry: high energy costs, high competition pressure from countries like China, but also the lack of qualified workers, which can cause constant risk to business.

Experts point out that turbulence among large companies is currently dominating the debate about possible deindustrialization. The "silent death" of many smaller businesses and highly specialized companies is at least as serious. They advise that there is now a need to have framework conditions that do not force companies to leave the country or declare bankruptcy. Specifically, this means: the end of bureaucratic games related to slavery and high taxes and customs duties. Also the introduction of competitive energy prices that help small and medium enterprises to ensure growth and prosperity again.

The year 2023 threatens to be the second consecutive year in which the number of closures is greater than the number of new businesses. This has never happened before, adds BILD. According to analysts there is a great risk that it will not be just individual closures, but that the industry will leave on a larger scale and never return.


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