Cases of credit defaults are witnessing a significant rise.
Struggling Economy Hits Home: corporate insolvencies skyrocket in Rhein-Kreis Neuss
The troubling economic landscape is taking a toll on local businesses, and the numbers don't lie. In the recently concluded third quarter of 2023, a staggering 40.7% more corporate insolvencies were registered with the North Rhine-Westphalian local courts compared to the same period last year. As reported by Information and Technology North Rhine-Westphalia, a total of 1,293 corporate insolvencies were recorded from July to September 2023, a significant jump from the 919 recorded in the same period in 2022. The looming claims now total an immense €1.5 billion in the third quarter of 2023, more than double the amount in the third quarter of 2022.
The wave of insolvencies is affecting the employment scenario as well. The number of employees impacted by these corporate failures has also surged, with 7,698 individuals facing potential job loss or supervised operations, more than double the number from July to September 2022 (3,267 employees).
The increase in affected employees and expected claims is mainly attributed to a higher number of insolvency applications from economically vital companies and chains. It's important to note that the health and social sector has been disproportionately affected, with 60 corporate insolvencies recorded from July to September 2023, a concerning triple increase compared to the same period in 2022.
The statistics also highlight a 16.5% rise in consumer insolvency applications in North Rhine-Westphalia to 4,543 in the third quarter of 2023, accompanied by a 21.2% increase in expected claims to €208 million in the same quarter.
Other insolvency procedures, totaling 1,386, were also registered, but the statisticians did not specify their classification.
here.
Compared to July to September 2022, the total number of reported insolvency procedures in the third quarter of 2023 increased by 20.7%, reaching 6,571 procedures, and the expected claims totaled €2.0 billion, nearly double the amount from the same period in 2022.
For more detailed reporting, check out this link.
While the Leibniz Institute for Economic Research Halle (IWH) reports an overall increase in insolvencies and employee impact in several German regions, with some districts reporting over 100 insolvencies and thousands of employees affected, no explicit recent local government reports or detailed statistics about Rhein-Kreis Neuss were found. However, the regional trend in North Rhine-Westphalia and the IWH studies suggest that Rhein-Kreis Neuss is part of a broader economic struggle, with increasing corporate failures and potential job losses.
Worried about the state of your local economy? Subscribe to our newsletter here and stay informed about societal developments, cultural events, and more in Neuss!
Disclaimer: We respect your privacy. Check out our privacy policy for more information.
privacy policy.
- The surge in corporate insolvencies, along with the rising claims, is underscoring the financial strains that local businesses in Rhein-Kreis Neuss are enduring.
- As the financial health of businesses falters, the impact on employment is becoming increasingly evident, with a significant rise in potential job losses for individuals in Rhein-Kreis Neuss.
