World Economy

German Company Bankruptcies Fall

German Company Bankruptcies FallGerman Company Bankruptcies Fall

The number of German companies filing for insolvency fell further in the first half of the year after reaching a record low in 2015, as Europe’s biggest economy enjoys a prolonged upswing, data showed on Wednesday, Reuters reported. The number of companies registering as insolvent fell by 5% to some 11,000 compared to the first six months in the previous year, the Federal Statistics Office said. The sum of probable claims by creditors of insolvent firms nearly doubled to €16.5 billion ($18.5 billion), however, because there were several big companies among the overall fewer firms that filed for insolvency, the office said. The number of personal bankruptcies also declined, going down roughly 3% to 39,228. The German economy grew by 0.7% in the first quarter and by 0.4% in the second, mainly driven by strong private consumption and higher state spending. Leading economic institutes are a bit more optimistic with a predicted growth rate of 1.9% this year which would be the strongest in five years.