One in Five Companies in Germany Feels Threatened by Coronavirus Crisis

Nearly one-fifth of all companies in Germany believe the coronavirus crisis presents a threat to their survival. This is a finding from the latest ifo Business Climate survey, which reported that this proportion was 18.7 percent in February, after 17.6 percent in November 2020 and 21.8 percent in May 2020. “Among the major sectors of the economy, retail felt particularly at risk in February with 34.5 percent of companies worrying they might not survive, ahead of service providers with 26.3 percent,” said Klaus Wohlrabe, Head of Surveys at ifo. Sectors with a below-average number of companies that feel under threat were wholesale with 12.8 percent, manufacturing with 7.5 percent, and construction with 3.6 percent. “Companies with liquidity problems are especially fearful for their future,” Wohlrabe adds.

These fears are most acute in the travel industry with 83.7 percent of companies, the hotel industry with 82.3 percent, and restaurants and catering with 72.3 percent. They are followed by rental and leasing activities at 33.3 percent, beverage manufacturing at 27.3 percent, and advertising and market research at 24.4 percent.

Comparatively relaxed are the mechanical engineering industry with 5.6 percent, the electrical industry with 4.4 percent, the chemical industry with 3.9 percent, automotive with 2.3 percent, legal and tax consultants with 1.2 percent, and the pharmaceutical industry with 0.9 percent.