Berlin (dpa) – The German government expects a considerable increase in the number of firms declaring bankruptcy due to the consequences of the coronavirus pandemic, local media reported.
“The federal government estimates that the number of firms going into administration will significantly increase in 2021,” the government said in response to a query by the liberal FDP party, according to the Augsburger Allgemeine newspaper.
Current forecasts say that there will be thousands more bankruptcies compared to 2019, when 18,749 firms went into administration, the newspaper reported.
But there would not be a “massive wave of insolvencies in the span of the real economy,” the responsible Justice Ministry said according to the report, adding that these forecasts, “however, involved a high degree of uncertainty.”
