BERLIN, Nov 15 — The number of business insolvencies filed in Germany in October rose by 22.4 per cent year-on-year, according to provisional figures published by the Federal Statistical Office (Destatis) yesterday.

The year-on-year increase in insolvencies in Europe’s largest economy has been in the double-digit percentage range since June, according to the figures, reported Xinhua.

Although the "widely feared wave of insolvencies has still not materialised,” some sectors, such as construction, real estate and healthcare, were "currently under particular economic pressure,” the Registered Association of Insolvency Administrators (VID) said.

According to the Halle Institute for Economic Research (IWH), the number of insolvencies in October was "once again well above the level before the Covid-19 pandemic.” Early indicators would suggest further increases in the coming months.

In line with leading economic institutes, the government lowered its annual growth forecast in mid-October and it now expects a recession of 0.4 per cent in 2023.

High inflation as well as energy and labour cost are burdening the German economy. According to a survey published by consulting firm Deloitte on Tuesday, two thirds of the companies surveyed have already relocated parts of their value creation abroad.

Last week, the German government presented a package of economic measures to reduce electricity cost for its industry. The electricity tax for manufacturing companies is to be reduced from 1.5 eurocent per kilowatt hour (kWh) to the European Union (EU) minimum of 0.05 eurocent/kWh.

In 2024 alone, the relief offered to German manufacturing companies will total €12 billion (RM60.7 billion). "This is very good news for Germany as a business location,” German Chancellor Olaf Scholz said in a statement. — Bernama-Xinhua