BERLIN (Pakistan Point News / Sputnik - 06th July, 2020) A fifth of German companies fear their survival may be at risk as they struggle with the economic fallout of the coronavirus outbreak, a study published Monday has revealed.
As much as 21 percent of companies surveyed in June said that the adverse effects of the coronavirus crisis could push them into insolvency, according to the ifo Institute.
"We could see a wave of insolvencies in the coming months," Stefan Sauer, an ifo researcher behind the study, was quoted as saying.
Data shows that the services sector was hit the hardest, with 85 percent of travel agencies and tour operators fearing insolvency, followed by 76 percent of hotel owners and 67 percent of restaurant owners.
Additionally, 55 percent of creatives, arts workers and those in the entertainment industry said they felt threatened. That figure was 48 percent in the movie business.
In trade, 21 percent of retailers said they were unsure if they could survive. Wholesalers were feeling less impacted, with 15 percent believing themselves to be at risk.
In the industry sector, 53 percent of metal manufacturers and processors said they were threatened with insolvency, compared to slightly over a quarter of carmakers and their suppliers. That figure was only 2 percent in the construction business.
