German corporate insolvencies rose 10.4% in Sept. 2025, driven by fading pandemic support and economic headwinds.

Corporate insolvencies in Germany rose 10.4% in September 2025 compared to the prior year, with 1,481 filings—14% higher than last year and 64% above the 2016–2019 average—according to preliminary data. The third quarter saw 4,478 insolvencies, second-highest since 2005 and above post-2009 crisis levels. The German economy ministry cited sluggish growth, rising costs, and geopolitical uncertainty. IWH researcher Steffen Mueller attributed the surge to delayed business failures following the end of pandemic-era support and low interest rates, calling the expected stabilization a sign of fading catch-up effects, not recovery.