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DIHK Warns Germany Faces De‑Industrialization Risk as Insolvencies Hit 12‑Year High

The chamber says lower interest rates have not revived investment because structural costs and red tape are weighing on firms.

Overview

  • DIHK chief Helena Melnikov warns that Mittelstand manufacturers are shifting production abroad or closing, calling the danger of de‑industrialization real.
  • About 1,600 industrial firms went insolvent in 2025, the highest in roughly twelve years, and Creditreform estimates 23,900 total corporate insolvencies for the year.
  • Official data show 18,125 insolvency filings in the first three quarters of 2025, an increase of 11.7% from a year earlier, marking the highest January–September total since 2014.
  • The DIHK reports roughly 400,000 industrial jobs have been lost since 2019, with Destatis estimating a 2025 drop of 143,000 in manufacturing employment and gains concentrated in services.
  • Only 15% of about 23,000 surveyed firms expect improvement as one third plan to cut investment and one quarter plan job reductions, and the DIHK forecasts just 0.7% GDP growth for 2026 while urging energy, tax and bureaucracy reforms.