German Corporate Insolvencies to Rise for First Time in a Decade

The number of German corporations going insolvent is expected to rise for the first time since the 2009 economic crisis, Bloomberg News reported. In the latest sign that Europe’s biggest economy could be on the verge of recession, German credit rating agency Creditreform says the trend for company closures is hitting a turning point. The rate of corporate insolvencies sank by just 0.4% in the first half of the year -- 9,900 corporations have already become insolvent -- and a total of 20,000 are expected by the end of 2019. German factories are already in a slump after temporary problems last year morphed into a sustained downturn amid global trade tensions. The European Commission revised next year’s GDP forecast for the nation lower on Wednesday, saying the manufacturing weakness risks spilling into the service sector, the biggest part of the economy. Read more