EVERY FIFTH GERMAN COMPANY IS CONCERNED ABOUT BANKRUPTCY

The German Institute for Economic Research (IFO) conducted a scientific investigation into the impact of the pandemic on German business entities. It turned out that 21% of businessmen (practically every fifth) were concerned about bankruptcy due to the restrictive measures imposed by the German authorities.

A study made by German experts suggests that a wave of bankruptcies could cover the country in the coming months. In particular, this position was voiced by Stefan Sauer, who conducted the relevant research. The experts draw our attention to the areas of the economy that are most at a risk of becoming insolvent.

First of all, panic is characteristic of the representatives of the service sector, 27% of companies of which are on the brink of bankruptcy.

According to IFO, many in this segment are concerned about the effects of the pandemic. In the sector of trade, only 18% of respondents have such attitudes. There are even fewer of them in the industrial sector (17%). The representatives of construction companies are almost not worried about the economic consequences of COVID-19 (only 2% expressed concern).

According to German analysts, travel agencies and tour operators will be at the greatest risk of bankruptcy in Germany (85% are concerned about this prospect). Significant risks are also borne by the owners of the hotel (76%) and restaurant businesses.

Representatives of creative professions in Germany are also worried about their future and earning opportunities.

Negative expectations are expressed by 55% of artists, actors and music performers. A difficult situation has developed in the field of film production, where about 48% of companies are afraid of bankruptcy.

In general, according to the conclusions of German experts, Germany will probably be able to return to the pre-crisis state only in 2021. Currently, about 77% of German enterprises expect a drop in turnover. Such information is given by the federal association of the CCI of Germany. According to the chambers of commerce, no more than 17% of German entrepreneurs have so far managed to return to the level preceding the pandemic.