More than 200,000 jobs in Germany could be at risk from corporate bankruptcies this year, as business failures are expected to reach their highest level in 14 years, credit insurer Allianz Trade said.
Allianz Trade, a subsidiary of insurance giant Allianz, published the assessment as part of an outlook on international bankruptcies.
The figure is an extrapolation based on available data.
“Even now, the conflict in the Middle East is having a clear impact on Germany, and the US trade war is far from over,” said Milo Bogaerts, head of Allianz Trade in Germany, Austria and Switzerland, according to the Telegraph.
In Germany, the credit insurer expects the number of bankruptcies to rise by 2.4% year-on-year to 24,650 cases.
“This would be the highest level in 14 years,” Bogaerts said.
According to Germany’s Federal Statistical Office, local courts in Germany registered 24,064 cases last year, a significant increase of 10.3%.
Overall, Allianz Trade expects corporate bankruptcies internationally to rise by 6%, which is stronger than in Germany.
Experts had revised the forecast upwards because of the war in Iran.
The conflict is increasing pressure on energy-intensive sectors such as transport, chemicals and metals, said the company’s chief executive Aylin Somersan Coqui.
Next year, Allianz Trade expects the trend in Germany to reverse, with bankruptcies expected to fall by 2% to 24,150 cases.
The insurer expects war-related pressures to ease and economic measures to boost the economy./BuzPost/
