Albeit with Regional Differences

Röhl Klaus-Heiner

Klaus-Heiner Röhl / Gerit Vogt IW-Trends No. 3 31. July 2016 A Sustained Decline in Corporate Insolvencies: Albeit with Regional Differences

With the exception of the crisis years 2008 and 2009 the number of Germany’s corporate insolvencies has declined steadily from its peak in 2003. Indeed, 2016 is expected to set a new record low for the new millennium of only 22,000 bankruptcies.

Klaus-Heiner Röhl / Gerit Vogt IW-Trends No. 3 31. July 2016

A Sustained Decline in Corporate Insolvencies: Albeit with Regional Differences

IW-Trends

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With the exception of the crisis years 2008 and 2009 the number of Germany’s corporate insolvencies has declined steadily from its peak in 2003. Indeed, 2016 is expected to set a new record low for the new millennium of only 22,000 bankruptcies.

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Two causes can be identified for this substantial fall: at the federal and state levels economic growth has proved a decisive factor, while for individual enterprises growing equity ratios have had a benevolent influence. On the other hand, the declining number of insolvencies has been accompanied by a similar drop in the number of start-ups. As a result, the ratio of start-ups and closures to the total number of companies, known as the turbulence rate, is also decreasing, possibly signalling a decline in modernization of the German economy.

Klaus-Heiner Röhl / Gerit Vogt IW-Trends No. 3 31. July 2016

Klaus-Heiner Röhl / Gerit Vogt: Unternehmensinsolvenzen – Anhaltender Rückgang bei fortbestehenden regionalen Differenzen

IW-Trends

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The 9th IW Survey of Further Training

In 2016 some 85 per cent of companies in Germany were active in continuing vocational training, using a broad mix of methods.

IW Research Group Macroeconomic Analysis and Forecast IW-Trends No. 4 27. November 2017

Has the German Economy Reached its Limit?: Skilled Labour Shortages as a Brake on Growth

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