The study showed a record number of businesses that have closed in Germany

Last year, more than 196,000 businesses closed in Germany. This became known on May 21 from a joint study by the Center for European Economic Research (Zentrum für Europäische Wirtschaftsforschung, ZEW) and the German credit company Creditreform.

"In 2024, 16% more companies closed than in the same period last year. A total of 196.1 thousand companies across Germany have ceased operations — this is the highest figure since 2011, when many enterprises were forced to close as a result of the financial crisis," the publication says.

It is noted that these figures are alarming in all sectors of the German economy. According to Patrick-Ludwig Hanzsch, head of economic research at Creditreform, higher rates have not been seen for about 14 years. He stressed that industrial enterprises suffer from high production costs for electricity.

According to the study, 1,050 companies have closed in energy-intensive industries alone, which is 26% more than in 2023. 360 companies have stopped working in the chemical and pharmaceutical industries, the highest number in the last 20 years.

It is specified that 13.8 thousand companies have closed in the technology—intensive sector, which is 24% more than in 2023, and about 9.7 thousand companies left the market in the housing sector last year. There has also been a sharp increase in the number of closures of large, economically active enterprises, and this trend has continued for the third year.

"This is clearly an alarming signal for economic policy. Many companies are moving their production abroad, closing production sites, or even ceasing to invest in Germany," said Hanzsch.

One of the reasons for this trend is the demographic problem in the country, as more and more company owners are reaching retirement age without finding suitable successors.

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