BERLIN, Nov. 21 -- Business bankruptcies in Germany soared by 22.9 percent in October compared to the same month last year, reflecting the continued struggles of Europe's largest economy.

Excluding June 2024, monthly insolvency rates have seen double-digit year-on-year growth since June 2023, the German Federal Statistical Office (Destatis) reported on Thursday.

In August 2024, Germany recorded an average of 5.1 business bankruptcies per 10,000 companies, with transportation and warehousing hit hardest at 9.2 bankruptcies per 10,000, followed by the hospitality sector at 7.8.

"Collapsing demand from Germany and abroad, high energy and labor costs, and burdensome taxes and bureaucracy are weighing heavily on business prospects and finances," said the German Chamber of Commerce and Industry (DIHK).

Germany's economic challenges are mounting, with stagnant global demand, a skilled labor shortage, and intensifying competition. The economy is now forecasted to contract for a second consecutive year in 2024, making it the weakest performer among the Group of Seven (G7) advanced economies.

  - Xinhua