Restrictions imposed because of the threat of the spread of coronavirus, led to the ruin of a small number of German companies. However, experts say the approach of a powerful wave of bankruptcies that will cover the German economy, according to Focus.
According to the Bureau of credit histories Crifbürgel, will go bankrupt over 29 million German companies, 54 percent more than in 2019. Thus, the impact of coronavirus in Europe’s largest economy will be almost as strong as the global financial crisis of 2008-2009, when about 34 thousand enterprises went bankrupt. The current forecast did not take into account provided by the German state Bank Kreditanstalt fur Wiederaufbau (KfW) loans to be paid.
Experts also note that in 2021, the situation will not improve. On the contrary, difficulties arise for relatively profitable firms, which have to pay the loans.
Among the most affected by the coronavirus industries include tourism, catering and entertainment industry. It was here, according to representatives of the Criftbürgel, the expected increase in the number of bankrupt companies. Moreover, the crisis will have a negative impact on the automobile manufacturers, the trade fair industry and industries dependent on exports.
However, this does not mean that bankrupt companies disappear from the market, according to the Criftbürgel. The German law provides for a wide range of opportunities to save the business.
In mid-may, the German economy has experienced a record decline since the global financial crisis of 2008-2009. In the first quarter, GDP fell by 2.2 percent compared to the last three months of 2019.
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