German Companies Feel Their Survival Is Less Threatened than during the Coronavirus Crisis
At present, 7.5 percent of German companies feel their economic survival is threatened, finds an ifo Institute survey. “At the height of the pandemic, these numbers were much higher, at 21.8 percent. In the face of a sharp economic slowdown, companies are proving to be very robust,” says Klaus Wohlrabe, Head of Surveys at ifo. This proportion has risen only slightly compared to the previous survey in April, when it was 7.1 percent.
Retail is being hit particularly hard at the moment, with 11.6 percent of companies reporting a situation that threatens their survival (April: 6.9 percent). “The current rate of inflation is a major concern for retailers,” Wohlrabe says.
Among service providers, the proportion fell from 9.3 percent to 7.7 percent. Microenterprises and the solo self-employed, as well as the hotel industry, are particularly concerned. Companies in the IT and real estate sectors are not concerned for their survival.
In manufacturing, 7 percent of companies consider their survival threatened (April: 4.9 percent). The situation is still difficult for many companies in the textile industry (33.6 percent) and for printing companies (18.6 percent). But concerns have also increased in the metal industry. “Higher energy prices have led to a slight increase in survival fears, especially in energy-intensive industries,” Wohlrabe says. “However, manufacturing order books remain full.”
