BERLIN, May 11 (Xinhua) -- One in every 12 companies in Germany fears for its survival, a business survey showed on Monday, highlighting continued pressure from rising corporate insolvencies in Europe's largest economy despite a return to modest economic growth.
Some 8.1 percent of companies surveyed considered their existence threatened, the Munich-based ifo Institute said in its April business survey.
The situation was particularly acute in the retail sector, where the share climbed to 17.4 percent, the highest level ever recorded, as persistently weak consumer sentiment weighed on sales.
Companies cited sluggish demand, rising operating and energy costs, and mounting bureaucratic burdens as major challenges, ifo said. Insolvencies among suppliers or business partners could also spread pressure along supply chains and drag down other firms, the institute added.
"Given the geopolitical uncertainty, insolvency figures (among German companies) are likely to remain at a high level in the coming months," said Klaus Wohlrabe, head of surveys at ifo, adding that the broader economic situation remained severe.
Many German firms struggled with weak demand and high operating costs in 2025, though Germany's economy returned to modest growth after two consecutive years of contraction.
In addition, renewed geopolitical tensions and the resulting increase in energy and raw material costs were creating fresh risks for the economy, the institute noted.
