Will Surge in German Business Bankruptcies Hit Growth? The recent surge in German business bankruptcies has raised concerns about the country's economic prospects.
With 80% more company insolvencies than an average June between 2016 and 2019, Germany is witnessing a troubling trend that threatens to undermine its growth.
Insolvency rates can have a purgative effect on an economy, allowing unproductive companies to exit and freeing up resources for more productive sectors.