1 in 7 German companies fear for survival: Survey

Berlin, Jan 11 (SocialNews.XYZ) One in seven, or 14 per cent, of German companies in December 2021 saw their survival threatened by the Covid-19 pandemic, according to a survey.

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 per cent and 67.4 per cent fearing for survival, respectively, reports Xinhua news agency citing the published by the Munich-based ifo Institute on Monday.

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 per cent 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 per cent to 17.1 per cent 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 per cent of companies in this sector considered their survival threatened, according to the ifo Institute.

Source: IANS