Over 10,000 German firms went bust in four months

9th July 2009, Comments 0 comments

Germany's economy, which is heavily dependent on exports, has been hammered as demand for goods "made in Germany" dries up around the world amid a global recession.

Berlin -- More than 10,000 companies declared insolvency in Germany between January and April this year, official data showed Wednesday, as the global economic crisis hits Europe's top economy harder than most.

In total, 10,700 firms went bust in the first four months of 2009, a rise of 12.1 percent on the same period last year, the statistics office said.

In April alone, there were 7.1 percent more companies going bust than in the same month in 2008.

Germany's economy, which is heavily dependent on exports, has been hammered as demand for goods "made in Germany" dries up around the world amid a global recession.

Authorities in Berlin estimate the economy will shrink by a record six percent this year, before recovering to register a minimal growth of 0.5 percent in 2010.

The recession has taken its toll on firms large and small. Earlier this week, chemical giant BASF announced it was slashing 3,700 jobs by 2013.

AFP/Expatica

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