Germany Records Highest Corporate Bankruptcies in 20+ Years
Nearly 5,000 companies filed for insolvency in Q2 2026, the highest second-quarter figure since 2005, as economic pressure mounts across construction, trade, and services sectors.
Germany recorded its highest number of corporate bankruptcies in more than two decades in the second quarter of 2026, with 4,996 companies filing for insolvency—up 9% from the previous quarter and marking the highest second-quarter figure since 2005. The increase spanned almost all major sectors, including construction, real estate, trade, hospitality, and services, affecting around 45,500 jobs. In June alone, 1,702 companies filed for insolvency, 20% more than a year earlier.
Economic Headwinds
Germany has faced mounting pressure from high energy costs since phasing out Russian oil and gas imports following the Ukraine conflict, with additional strain from a spike in crude prices triggered by the US-Israeli war on Iran. The German economy contracted in 2023 and 2024 and is projected to grow by just 0.5% this year.
For expats and workers: If you work in construction, retail, hospitality, or real estate, monitor your employer's financial health closely. Job security in these sectors has deteriorated sharply. Freelancers and contractors should demand faster payment terms and avoid long-term commitments to financially unstable clients. The ongoing economic squeeze means negotiating salaries and benefits will be harder, but it's an opportunity to secure more flexibility or remote work arrangements before further cuts kick in.
Sources
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