The sluggish economy in the eurozone and slower growth in China are unfavourable for export-oriented German companies. In addition, German companies are increasingly suffering from the consequences of numerous geopolitical crises and flashpoints. For these reasons, among others, Euler Hermes expects gross domestic product growth to weaken while insolvencies in Germany rise at the same time. The study forecasts an increase to approximately 24,979 cases, equivalent to 2% (compared to a 6% decline in insolvencies in 2014). Read more on the Euler Hermes insolvency forecast.
Frequently asked questions
Frequently asked questions
How are corporate insolvencies in Germany developing according to the Euler Hermes 2015 forecast?
Euler Hermes forecasts a roughly 2 percent rise in corporate insolvencies in Germany in 2015, to around 24,979 cases. This reverses the previous year's trend, when insolvencies had still declined by 6 percent.
Which factors are driving the projected rise in insolvencies in 2015?
Key factors include the weak economy in the eurozone and slowing economic growth in China, which particularly affects export-oriented German companies. Added to this are the economic consequences of numerous geopolitical crises and hotspots, which are placing an increasing burden on German businesses.
Why are export-oriented German companies particularly affected by economic developments?
German companies generate a substantial share of their revenue abroad, particularly in the Eurozone and China. An economic slowdown in these markets directly leads to declining revenues, shrinking margins, and an increased risk of insolvency.
How are insolvency forecasts and gross domestic product linked?
Euler Hermes expects weaker growth in German gross domestic product and views this as a key driver of rising insolvency figures. Slower economic growth means fewer orders and reduced liquidity for companies, which encourages payment defaults and insolvencies.