Germany sees decline in newly founded businesses in H1 due to COVID-19

The number of newly founded larger businesses declined by 9.4 percent year-on-year to roughly 58,000 in the first half of the year (H1) in Germany, the Federal Statistical Office (Destatis) announced on Monday.

The number of new small businesses in Germany even plummeted by 21.1 percent. According to Destatis, the decline was “due to special effects caused by the coronavirus pandemic.”

As a result of COVID-19 restrictions imposed in Germany to counteract the spread of the coronavirus in March, there had been a “significantly lower number of registrations,” Destatis noted.

Meanwhile, the number of business closures also declined by 17.4 percent year-on-year, noted Destatis, explaining that many businesses would “initially wait for further economic developments.”