Far Fewer German Companies Feel Their Survival Is Threatened
Far fewer German companies are fearing for their survival, despite Russia’s attack on Ukraine. This is the finding of an ifo Institute survey. With 7.1 percent of companies feeling their existence threatened, this proportion has almost halved compared to the previous survey in January 2022, when it was 13.7 percent. “However, sectors that have been hit particularly hard by the coronavirus pandemic still feel threatened. These include the hospitality and event industries, where almost 25 percent of companies are reporting concerns over their survival,” says Klaus Wohlrabe, Head of Surveys at ifo.
In retail, 6.9 percent of companies spoke of a situation in which their survival was threatened (January: 14.8 percent). “These numbers don’t yet show any traces of the current inflation dynamic,” Wohlrabe says.
In the service sector, the figure was 6.9 percent, down from 15.1 percent in January. Virtually none of the companies in the IT and real estate sectors are reporting survival concerns.
In manufacturing, only 4.9 percent of companies fear for their survival (January: 5.6 percent). The situation is proving difficult for many companies in the textile industry (35.6 percent) and among printing companies (21.2 percent). “The high level of uncertainty generated by the war in Ukraine hasn’t triggered an increase in survival fears in the key sectors,” Wohlrabe says. “Manufacturing order books remain full.”
