German corporate bankruptcies declined by a quarter in July
(AP)
Updated: 2006-10-05 16:24 BERLIN - The number of
German businesses filing for bankruptcy declined by a quarter in July, boosting
optimism that Europe's biggest economy is strengthening.
A total of 2,327 firms went bankrupt in July - a decline of 25.4 percent
from the same month last year, the Federal Statistics Office said. Over the
first seven months of the year, the number of corporate bankruptcies fell by
16.5 percent to 18,592.
The latest figures continue a trend that started in early 2005. Over the
course of last year, 6 percent fewer businesses went bankrupt than in 2004.
Germany is emerging from years of sluggish growth that has driven up
unemployment, drained the government's coffers and put a drag on economies
across the continent.
The recovery is being driven by a long-awaited increase in consumer spending
and a boom in exports.
Economy Minister Michael Glos has said Germany's economy could grow by as
much as 2.5 percent this year, well above the official government growth
forecast of 1.6 percent.
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