Coronavirus hits German economy
The result of a recent survey concluded that 56.2 percent of German companies are suffering from the consequences of the coronavirus epidemic – especially tour operators and travel agencies.
03/12/2020 · Wirtschafts- und Sozialwissenschaften, Raumwissenschaften · ifo Institut Leibniz-Institut für Wirtschaftsforschung an der Universität München e. V. · News · Forschungsergebnis
The German economy is suffering considerably from the consequences of the coronavirus epidemic, with 56.2 percent of companies currently experiencing negative effects. This is the result of a recent survey the ifo Institute conducted of almost 3,400 service providers as well as companies in industry and trade. The situation is worst for tour operators and travel agencies, where nearly 96 percent are seeing a negative impact. At 79 percent, companies in the hospitality and restaurant industry are also being severely affected. Only 2.2 percent of all companies report a positive effect.
In the manufacturing sector, the proportion of firms that are feeling negative effects of the epidemic was 63 percent. Of the affected companies, 76.4 percent say that they have canceled or delayed business trips. There are difficulties with the supply of intermediate products or raw materials for 52.0 percent of the companies affected. Business activity at foreign subsidiaries is impaired for 46.3 percent of companies, and 44.1 percent are seeing a decline in demand. Companies in the electrical industry, mechanical engineering, the furniture industry, and the chemical industry are being hit the hardest.
Negative effects extend to 63 percent of companies in the trade sector as well. The biggest problems are due to delays or cancellation of deliveries in purchasing (65.9 percent of affected companies), followed by a decline in demand (58.7 percent) and delays or cancellation of business trips (52.3 percent).
Among service providers, 50.3 percent of companies are already feeling negative effects. The main reason is a decline in demand (65.5 percent of the affected companies), especially because trade fairs and congresses have been canceled and orders or reservations withdrawn. Tourism, too, is seeing a massive decline.