More than 29% of German companies will not be able to survive longer than three months under quarantine restrictions.
This is evidenced by data from the German Institute for Economic Research.
According to the organization, 52.7% of companies operating in Germany are able to operate for up to six months under quarantine conditions. At the same time 29.2% will be able to survive for a maximum of three months, after which they will have to close down.
“These are alarming figures, which indicate a wave of bankruptcies in the future”, – said the institute economist Klaus Volrab.
In addition, Refinitiv’s data show that European corporate income forecasts for the second and third quarters of 2020 continue to decline due to concerns about the extent of recession caused by the coronavirus pandemic.
Companies that are part of the Europe-wide index STOXX 600 are expected to face a 40.4 percent decline in profits in the second quarter compared to last week’s forecast of 37 percent.
Economists expect the decline in revenues to reach 29.1% in the third quarter. Previously, 27.6% was predicted.