Germany Faces Highest Corporate Insolvency Levels in 14 Years Amid War Pressure
More than 200,000 jobs in Germany could be at risk this year due to the ongoing war in Iran, according to a report cited by German broadcaster n-tv. The warning is based on data from credit insurer Allianz Trade.
The insurer estimates that rising corporate insolvencies could directly threaten over 200,000 jobs across the country. It links the surge to global instability, particularly the Middle East conflict and ongoing trade tensions with the United States.
Milo Bogaerts, head of Allianz Trade in Germany, Austria, and Switzerland, said the situation is already weighing heavily on the economy. He noted that energy-intensive industries such as transport, chemicals, and metals are especially vulnerable to rising costs and supply chain pressure.
The report forecasts that insolvencies in Germany will increase by 2.4 percent compared to last year, reaching around 24,650 cases. This would mark the highest level in 14 years, according to Bogaerts. Official statistics from the Federal Statistical Office show 24,064 insolvencies were already recorded last year, a sharp rise of 10.3 percent.
Globally, insolvencies are expected to rise even faster, by around six percent. Allianz Trade CEO Aylin Somersan Coqui said the escalation of the Iran conflict has intensified financial pressure across multiple sectors, forcing a revision of earlier economic forecasts.
Despite the current downturn, the report predicts some recovery next year. Insolvencies in Germany are expected to fall slightly to around 24,150 cases, as war-related pressures ease and government stimulus measures help stabilize the economy.