ifo Institute: Many German Companies See Their Existence Threatened

Many German companies feel that the coronavirus crisis threatens their existence. This is the result of the April survey conducted by the ifo Institute. Of the companies surveyed, 29.2 percent said they could survive for three months or less if the pandemic-related restrictions were to remain in place for a longer period; 52.7 percent could hold out for six months or less. “These are worrying figures that point to a coming wave of bankruptcies,” says Klaus Wohlrabe, Head of Surveys at ifo.

The situation in April was particularly critical in the retail sector, with 44.9 percent of companies responding that they could keep going for a maximum of three months. A total of 63.2 percent of retailers say they can survive for a maximum of six months.

Among the service providers, 31.3 percent say they won’t make it beyond the next three months; a total of 56 percent of the service providers will have to file for bankruptcy at the latest six months from now.

German industry is on a somewhat more stable footing: 24.8 percent of respondents only have the strength to survive for a quarter of a year, while 48 percent of industrial companies will be forced out of business in six months or less.

Construction seems to be in the best shape at present: 20.4 percent of companies can hold out for three months or less, and 45.4 percent of them will disappear after half a year at the latest.