Germany is reporting rising exports and economic growth, yet corporate bankruptcies continue to increase. In June 2026, goods exports were 6.6 percent higher than the previous year’s figure, reaching a monthly record. Gross domestic product also grew by 0.9 percent year-on-year in the second quarter. Nevertheless, the IWH recorded 1,689 insolvencies among partnerships and corporations in July. This was seven percent more than in July 2025. Compared to the average for July during the years 2016 to 2019, the figure is actually 75 percent higher. Furthermore, 26 percent more employees were affected by the largest insolvency cases than a year earlier. At the same time, the IWH’s leading indicators reached a new high.
Corporate insolvencies rise despite significantly higher exports
The latest foreign trade figures initially present a positive picture. In June, Germany exported goods worth 139.3 billion euros. This represented an increase of 0.9 percent compared to May and 6.6 percent compared to the previous year. Moreover, calendar- and seasonally adjusted exports reached a new monthly record. Exports for the first half of the year were also 3.7 percent above the level seen in the same period of the previous year.
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However, imports grew even more rapidly. They rose by 8.4 percent year-on-year and by 4.4 percent compared to May. Consequently, the trade surplus shrank from 19.3 billion euros to 15.4 billion euros within a single month. At the same time, exports to the USA plummeted by 14.2 percent compared to May. Furthermore, exports to the USA declined by 5.8 percent during the first half of the year, while exports to China fell by as much as 12.3 percent.
Economic growth has yet to reach many companies
Gross domestic product (GDP) figures also signal an economic recovery. The German economy grew by 0.9 percent in the second quarter compared to the same quarter last year. However, growth amounted to just 0.2 percent compared to the first quarter. Exports bolstered this trend, whereas private consumption remained sluggish. Meanwhile, investment declined.
The industrial sector also presents a mixed picture. Although total production rose by 0.2 percent in June compared to May, core industrial production stagnated month-on-month and fell by 0.8 percent year-on-year. In addition, output in energy-intensive sectors dropped by 1.8 percent compared to May. While incoming orders increased by 3.1 percent, orders excluding large-scale contracts actually fell by 0.5 percent.
Long-term corporate insolvencies up by 75 percent
Corporate insolvency trends thus differ significantly from export and growth figures. In July, the IWH recorded seven percent more insolvency cases than twelve months earlier. Compared to the average for July during the years 2016 to 2019, the figure is actually 75 percent higher. This context demonstrates that the high number of cases is not solely attributable to a low figure from the previous year. The institute recorded a particularly high number of insolvencies in the sectors of business-related services and financial and insurance services.
The impact on employees is also intensifying. More than 13,000 jobs were affected in July across the largest ten percent of insolvent companies. This represents an increase of 26 percent compared to July 2023 and 47 percent compared to the average for the years 2016 to 2019. The manufacturing sector alone accounted for just under 6,000 of the affected jobs. Additionally, IWH leading indicators for future corporate insolvencies reached a new high. Consequently, the institute anticipates very high insolvency figures in the coming months as well.
Author: Blackout News
Sources: Welt (06.08.26) – Statistisches Bundesamt /07.08.26) – Leibniz-Institut für Wirtschaftsforschung Halle (06.08.26)