Economic Decline and Rising Insolvencies

There is a significant increase in corporate insolvencies in Germany, with a 22.9% rise reported in October 2024 compared to the previous year. Various sectors, particularly hospitality, construction, and services, are experiencing continuous double-digit growth rates in bankruptcies since June 2023. Meanwhile, Austria is facing the highest insolvency rate in Europe, with a staggering 59.7% increase across the continent. The economic situation is exacerbated by a recession affecting both Germany and Europe, making financial stability increasingly precarious.