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German companies view coronavirus crisis as an existential threat

Almost one in five German companies considers the coronavirus crisis to be an existential threat. The most acute are the concerns in tourism.

German companies view coronavirus crisis as an existential threat
Yazar: Tom Roberts

Yayınlanma: 18 Mart 2021 19:51

Güncellenme: 8 Kasım 2024 06:35

German companies view coronavirus crisis as an existential threat

Almost one in five German companies considers the coronavirus crisis to be an existential threat. The Ifo Economic Institute informed about it on Thursday. The share of companies worried about their survival due to the pandemic rose to 18.7 percent in February from 17.6 percent in November. In May 2020, 21.8 percent of companies shared these concerns. "Among the main sectors of the economy in February, retail felt the risks, where 34.5 percent of companies fear that they may not survive. This was followed by service providers with a share of 26.3 percent, "said Klaus Wohlrabe, chief researcher at the Munich Institute. In wholesale, 12.8 percent of companies were threatened. There were 7.5 percent of them in the manufacturing industry and 3.6 percent in the construction industry. "Especially companies that have liquidity problems are worried about their future," Wohlrabe added. These concerns are most acute in tourism with a share of 83.7 percent. This is followed by hotel operators, where 82.3 percent of companies feel existential threats. In the restaurant and catering segment, 72.3 percent of companies are worried about the future.
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