In Germany, the number of bankrupt partnerships and corporations in September was 34% higher than in the same period of the previous year, and further growth of insolvent companies is expected in autumn. This was announced on October 10 by the Leibniz Institute for Economic Research (IWH).
“The number of insolvent partnerships and corporations in Germany in September was 762. This is 34% more than in September 2021,” the report says.
It is noted that, according to forecasts made a month ago, a 25 percent increase in the number of bankrupt companies on an annualized basis was expected in September. So last month 762 organizations went bankrupt.
In addition, economists predicted an excess of 2021 in November by 40%. At the same time, for the year, IWH added, growth in the range of 12-14% can be expected, since insolvency rates in the first half of the year were still slightly below last year’s level.
It also notes that 6,600 jobs were affected in the top 10% of companies whose bankruptcy was reported in September. The corresponding situation is connected with the deterioration of the economic situation in the country. In particular, with a sharp rise in prices for important factors of production.
Earlier in the day, International Monetary Fund (IMF) head Kristalina Georgieva said countries that make up a third of the world’s Gross Domestic Product (GDP) are facing recession in 2023.
On October 6, Zoran Meter, a columnist for the Geopolitika portal, expressed the opinion that the countries of Europe plunged into an unprecedented energy crisis. He added that European politicians are acting unwisely, continuing to repeat that they will find an alternative to Russian energy sources.
On the same day, Artem Sokolov, a researcher at the Center for European Studies at the Institute for International Studies at MGIMO, said in an interview with Izvestia that economic problems in Germany could intensify against the backdrop of a growing flow of Ukrainian refugees.
Also on October 6, Oleg Tyapkin, director of the third European department of the Russian Foreign Ministry, admitted that Berlin could refuse Russian gas over the next two years, but this would lead to an economic crisis in Germany. Already now, according to him, in Germany there is a progressive economic and energy crisis, a huge increase in energy prices, curtailment and withdrawal of production and investment from the country, and a decrease in the competitiveness of the German economy and the purchasing power of the population.
Germany and other European countries have faced unprecedented increases in gas and electricity prices due to the policy of reducing energy imports from Russia, which was taken after the start of the Russian special operation in late February. However, all this has already turned into economic problems for Western countries, causing a sharp rise in fuel and food prices.
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