Some 83% of German firms with foreign exposure complain of collapsing revenues

The skyline with its banking district is photographed during sunset in Frankfurt, Germany, May 20, 2020, as the spread of the coronavirus disease (COVID-19) continues.

BERLIN: Around four-fifths of German firms with foreign exposure have experienced a collapse in revenues as a result of the coronavirus crisis, and 93 per cent expect global economic conditions to improve only in 2021 or later, according to a survey.

The survey for the German Chambers of Commerce showed the devastation wrought by the epidemic on Europe’s largest economy, with 15 per cent of the roughly 3,300 companies surveyed reporting a halving of their annual turnover.

But the focus of the impact was shifting: whereas lockdown-related travel restrictions had a major impact on sectors including tourism and industry earlier on, now companies were increasingly feeling the impact via slackening demand.

In July 59 per cent of respondents complained of ailing demand for their products and services, up from 57 per cent in April. Teething troubles like supply bottlenecks and production stops had become less of an issue, however.

The impact of the virus was also being felt in firms’ dwindling eagerness to invest: in July, more than half of firms were planning to invest less abroad, compared with only 35 per cent in April.

Z24 News

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Alibaba's Ant plans Hong Kong IPO, targets valuation over US$200 billion, sources say

Wed Jul 8 , 2020
HONG KONG: Ant Group, the fintech arm of Chinese e-commerce giant Alibaba, plans a Hong Kong float as soon as this year and targets a valuation of more than US$200 billion, said two sources with knowledge of the matter. The world’s most valuable tech “unicorn” had been looking to sell […]

Share

Social menu is not set. You need to create menu and assign it to Social Menu on Menu Settings.