According to data gathered by AksjeBloggen, nearly half of the German companies expect major revenue drop in 2020 due to coronavirus pandemic.
More than 25% of them expect revenue declined by more than 50%.
Coronavirus outbreak affected 92% of the German economy
The DIHK survey conducted in March 2020 among 15,000 German companies showed that 23% of respondents expect profits drop between 10% and 25% due to coronavirus outbreak.
Another 26% of businesses stated they would probably experience a revenue decrease between 25% and 50%. Only 3% of respondents believed the coronavirus is not going to affect their revenue at all. Statistics showed 2% of German companies expected their income to increase in 2020.
The survey also revealed the coronavirus outbreak affected almost 100% of German businesses in the hospitality and travel industry. More than 90% of companies in the wholesale, transport and storage, retail and business-related services also significantly noticed the impact of the pandemic.
Manufacturing, health management, and construction industry follow with 88% and 86% of troubled companies, respectively. Statistics show that 92.4% of the entire German economy is affected by the coronavirus outbreak.
Two-thirds of German companies require emergency Government grants
The coronavirus also influenced how German companies evaluate their future. According to the DIHK survey, 63% of them expected less demand for their products and services in the following weeks.
Cancellation of orders ranked as the second-leading problem with a 48% share among respondents. The standstill of business activity, liquidity shortfalls, and reduced investments followed with 43%, 41%, and 38% share.
The survey also revealed almost 70% of German firms found emergency government grants and reduced hours compensation as the most relevant support measures during the coronavirus outbreak. Another 60% of them require a cut of advance payments.
Government and bank loans follow with 31% and 16% share of companies who preferer this type of support measures.