The Institute for Economic Research in Munich (ifo) says a large number of German companies are worried about bankruptcy due to the economic consequences of the pandemic.
The institute shared the results of its February research with the public on Thursday. Therefore, 80 percent of companies operating in the travel and hotel management departments and 70 percent of those operating in the field of gastronomy are worried about bankruptcy. Bankruptcy anxiety in retail sales was measured at 34.5 percent, while the proportion of companies that fear the closure of the service sector was recorded at 26.3 percent.
“Companies with liquidity problems in particular are worried about the future,” said Klaus Wohlrabe, an expert at the Institute for Business Cycle Research in the German economy.
The German economy does not have a homogeneous picture. Overall, as of February, one in five companies (18.7 percent) is worried about bankruptcy. In November last year, this ratio was recorded as 17.6 percent. With the completion of the first coronavirus closure measures in Germany in May 2020, it was measured that 21.8 percent of companies were concerned about bankruptcy. On average, there are companies in the economy that are unaffected or slightly affected by the economic crisis caused by the pandemic. Concerns in key economic sectors such as industry, machinery and construction are below average. The branch with the least bankruptcy problem is the pharmaceutical industry. Only 0.9 percent of companies are worried about bankruptcy.
dpa / EC, TY
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