German corporate bankruptcies declined by a quarter in July

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.