1 in 7 German companies fear for survival: survey

2022-01-10 23:32:32Xinhua Editor : Wang Fan ECNS App Download

Almost one in seven, or 14 percent of, German companies, in December saw their survival threatened by the COVID-19 pandemic, according to a survey published by the ifo Institute on Monday.

Travel agencies and tour operators, as well as companies in the event industry in Germany considered themselves to be particularly at risk, with 73.2 percent and 67.4 percent fearing for survival, respectively. The situation was only slightly better in the country's restaurant and catering as well as in the accommodation industry.

Due to COVID-19 measures such as a ban of large public events and club closures, revenues in the accommodation and restaurant industry in December were 50 percent below pre-crisis levels in 2019, according to a recent member survey by the German Hotel and Restaurant Association (DEHOGA).

"The tightening of COVID-19 rules is hitting the industry very hard again," said DEHOGA president Guido Zoellick, calling for more governmental support for the country's hospitality industry.

Germany's retail sector was also getting more pessimistic as the share of companies fearing for survival rose from 14.4 percent to 17.1 percent within six months. "This is also a consequence of consumer restraint," said Klaus Wohlrabe, head of ifo surveys.

The current course of the COVID-19 pandemic and the expected fifth wave due to the Omicron variant dampened consumer sentiment in Germany. According to a recent survey conducted by the German Retail Federation (HDE), private consumption was "likely to be rather subdued in the first quarter of the new year."

German manufacturers were less affected by the pandemic, as only 5.7 percent of companies in this sector considered their survival threatened, according to the ifo Institute.


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