According to a recent survey by the ifo Institute, fewer German companies see their economic existence threatened than last year. Compared with last December, when 6.3 percent of respondents felt their existence was at risk, the figure fell to 4.8 percent in January.
"The economic slowdown is thus unlikely to leave major traces in the form of corporate insolvencies," says Klaus Wohlrabe, head of Ifo surveys.
Due to the Corona pandemic, 21.8 percent of companies felt at risk in June 2020. The current easing of the situation runs through all sectors. Retail continues to be the hardest hit, with 8.3 percent of companies still reporting a situation that threatens their existence (down from 9.7 percent in December).
"High inflation rates and consumer restraint are causing problems for many retailers," Wohlrabe says.
The figure for service providers fell from 6.4 to 5.2 percent, with the hospitality and travel industries still particularly affected. In the manufacturing sector, 4.0 percent see their existence threatened, here the figure was still 6.5 percent in December. Energy-intensive sectors, e.g., the chemical industry, continue to be concerned, with the figure here remaining just above 10 percent.
