ifo Institute: One-Fifth of German Companies Consider Themselves at Risk
Just over a fifth of German companies deem their survival to be at risk as a result of the coronavirus crisis. This is the result of the ifo Institute’s latest survey. In June, 21 percent of the companies surveyed responded that the adverse effects of the coronavirus crisis put their very survival in danger. “We could see a wave of insolvencies in the coming months,” ifo researcher Stefan Sauer says.
The most affected are the service providers, 27 percent of which classified themselves as at risk. This figure was 18 percent in trade, 17 percent in industry, and just 2 percent in construction.
The highest levels of insecurity were felt by travel agencies and tour operators (85 percent), hotels (76 percent), and restaurants (67 percent). In addition, 55 percent of those working in the creative, arts, and entertainment industry deemed the survival of their business to be under threat. That figure was 50 percent in water transport and 48 percent in the film business.
In industry, it was primarily the metal manufacturers and processors that consider their future to be uncertain (53 percent). They were followed by textile manufacturers (38 percent), the printing industry (28 percent), the leather industry (27 percent), and automotive manufacturers and their suppliers (26 percent).
In trade, retailers were most affected with 21 percent unsure if they could survive. Wholesalers were feeling less impact, with 15 percent believing themselves to be at risk.
