Germany faces 20-year high in company closures

Germany experienced the closure of approximately 187,744 companies in 2025, the highest number in about 20 years, representing a 10% increase compared to 2024. Most sectors were affected, notably the hospitality industry, where around 15,000 companies shut down—an increase of 15%—and the healthcare sector, which saw the closure of about 11,000 companies due to declining sector revenues and the retirement of doctors. Additionally, around 11,000 manufacturing companies closed, marking a 10% rise. Studies indicate that the majority of closures occurred voluntarily, such as retirements and lack of successors, with only about 13% resulting from financial insolvency. Data points to a growing negative trend in the German economy, with decreasing confidence and growth, reflecting an ongoing financial crisis and challenges facing companies across the country.

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