More than 200,000 jobs in Germany could be at risk this year as rising corporate insolvencies linked to geopolitical tensions place growing pressure on Europe’s largest economy, according to a report cited by broadcaster n-tv.

Credit insurer Allianz Trade warned that an increase in company bankruptcies may threaten employment across multiple sectors, particularly as economic uncertainty deepens amid international conflicts and ongoing trade disputes.

Milo Bogaerts, regional head of Allianz Trade for Germany, Austria, and Switzerland, said the Middle East conflict and unresolved global trade tensions are already weighing heavily on German businesses. He noted that the combined impact of geopolitical instability and slowing economic momentum is intensifying financial stress for companies.

The insurer forecasts corporate insolvencies in Germany to rise by 2.4 percent this year, reaching approximately 24,650 cases — the highest level recorded in more than a decade.

Data from the Federal Statistical Office shows that German courts registered 24,064 insolvency cases last year, marking a sharp annual increase of over 10 percent and signaling worsening conditions for businesses.

Globally, Allianz Trade expects insolvencies to grow at an even faster pace of around six percent. CEO Aylin Somersan Coqui said escalating geopolitical tensions, including the war involving Iran, are driving higher energy costs and disrupting key industrial sectors such as transportation, chemicals, and metals.

Despite the challenging outlook for 2026, analysts anticipate some improvement next year. The insurer projects insolvency cases in Germany could decline slightly to around 24,150 as economic stimulus measures take effect and external pressures begin to ease.

Experts believe a gradual stabilization in global conditions may help support business recovery and restore confidence in Europe’s largest economy.