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Every seventh company fears Corona will end

Status: 10.01.2022 10:06 a.m.

Many companies in Germany continue to feel that their very existence is threatened by the pandemic. According to an ifo survey, concerns among tour operators and in the hospitality industry are particularly great.

Around every seventh company feels that its existence is threatened by the consequences of the corona pandemic. This is the result of a survey published today by the Ifo Institute in December. At 14 percent, the proportion remained unchanged compared to the last survey in June 2021.

“The travel agencies and tour operators still feel particularly at risk with 73.2 percent and companies from the event industry with 67.4 percent,” says Klaus Wohlrabe, head of the ifo surveys. The situation remains tense in the hospitality industry as well. More than half of the businesses there see their existence threatened: 52.5 percent of restaurants and pubs stated this. In the case of accommodation establishments, the share rose to 58.8 percent, after 52.1 percent in June 2021.

Buyers are reluctant

At the end of the year, 17.1 percent of the companies in retail spoke of a situation threatening their very existence, which corresponds to a slight increase compared to the June figures. “These are also the consequences of the reluctance of consumers,” said Wohlrabe.

Companies in the construction and manufacturing industries see themselves least affected. Here only 5.7 percent see their continued existence at risk. The only exception is the clothing industry. A good fifth (21.3 percent) of all companies feel their existence is threatened here. The percentage is similarly high at printing companies.

Number of bankruptcies declining

The feared bankruptcy wave in Germany has so far failed to materialize. According to the credit agency Creditreform, the number of corporate insolvencies fell by 10.8 percent to 14,300 cases last year. “We measured the lowest number of bankruptcies since the introduction of the bankruptcy code in 1999 and only counted half as many bankruptcies as in 2012,” said Patrik-Ludwig Hantzsch, head of Creditreform economic research.

Creditreform attributes the fact that, despite the restrictions in many industries and a weak economy, there was no wave of insolvency to the extensive state aid. “The other side of the coin, however, is the growing number of potential zombie companies, the creation of which is being promoted by the continued subsidy policy,” said Hantzsch.

Reference-www.tagesschau.de

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