IWH: No bankruptcy wave despite Omikron
HALLE / BERLIN (Dow Jones) – The Leibniz Institute for Economic Research Halle (IWH) has dispelled fears of a possible impending bankruptcy wave. After all-time lows, the number of insolvencies of partnerships and corporations has increased slightly in the past few months. “Despite the expected wave of omicrons, a wave of bankruptcies is not to be expected for the next two months,” said the institute.
“For the next two months we expect a largely stable bankruptcy trend,” said IWH economist Steffen Müller, who is responsible for insolvency research. The insolvency figures thus remained at an unusually low level. Should the wave of omicons lead to severe economic upheavals, an increase in bankruptcies “not before spring” would be expected, according to Müller.
According to the IWH insolvency trend, the number of insolvencies of partnerships and corporations in Germany was 717 in December. This means that the number has risen by a quarter compared to the all-time low in August / September. The fact that the number is still well below the level of the same month last year is primarily due to the fact that in December 2020 there was a one-off increase in insolvencies due to the expiry of the suspension of the obligation to file for insolvency.
The analysis of the IWH shows according to the information that in the top 10 percent of the companies whose bankruptcy was reported in December, about 6,700 jobs were affected. The number of jobs affected has more than doubled compared to the previous month.
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(END) Dow Jones Newswires
January 12, 2022 04:45 ET (09:45 GMT)