HAMBURG (dpa-AFX) - Corporate insolvencies are expected to put more than 200,000 jobs at risk in Germany this year, according to credit insurer Allianz Trade. The announcement was made by the Paris and Hamburg-based Allianz subsidiary as part of its international insolvency outlook. The figure represents a projection based on current data models.
"The Middle East conflict is already having a significant impact on Germany, and the US trade war is far from over," said Milo Bogaerts, CEO of Allianz Trade for Germany, Austria, and Switzerland.
In Germany, the credit insurer expects the number of insolvencies to rise by 2.4 percent year-on-year to 24,650 cases. "This would mark the highest level in 14 years," Bogaerts noted. According to the Federal Statistical Office, German district courts registered 24,064 cases last year - representing a sharp increase of 10.3 percent.
Overall, Allianz Trade anticipates that corporate insolvencies will rise by six percent internationally
- a steeper increase than in Germany. Experts revised the forecast
upward due to the conflict involving Iran. The situation is intensifying pressure on energy-intensive sectors such as transport, chemicals, and metals, said CEO Aylin Somersan Coqui.
Next year, Allianz Trade expects a reversal of the trend in Germany, with insolvencies projected to fall by two percent to 24,150 cases. According to the insurer, war-related burdens are expected to ease while economic stimulus measures bolster the economy./lkm/DP/stk
