Sunday, February 21, 2021
Companies run out of funds
Expert expects more bankruptcies
In lockdown, the air is becoming noticeably thinner for many companies. At the same time, state aid often does not seem to be effective. The economist Bernd Fitzenberger therefore expects an increase in business closures in the course of the year. Nevertheless, he rules out a real wave of bankruptcies.
The director of the Institute for Employment Research, Bernd Fitzenberger, has warned of the effects of a possible extension of the corona lockdown. "If a further extension of the lockdown were necessary from an epidemiological point of view, this would delay the economic recovery," said the head of the research institute of the Federal Employment Agency in the newspapers of the Funke media group.
Fitzenberger referred to a new company survey conducted by his institute, according to which "just under a quarter of the companies state that their liquid funds only last up to four weeks". In another quarter of the establishments, they only lasted for two months. "It is all the more important that they don't have to stand in the rain and that state aid arrives and takes effect on site."
Although he does not expect a wave of bankruptcies, there could be an increase in bankruptcies and business closings in the course of the year. Coronavirus mutations also represented a factor of uncertainty for the economy. As soon as the infection rate recedes and the vaccinations have worked so that the corona requirements can be partially relaxed, "we will see a strong economic recovery," the director predicted.
According to Fitzenberger, the second lockdown has so far not had as much of an impact on the labor market as the first. Seasonally adjusted, unemployment has even fallen slightly recently. "The job market is currently very resilient." On the one hand, this is due to short-time work, companies are sticking to their skilled workers. On the other hand, in the first lockdown, industry was also more severely affected by supply bottlenecks, production downtimes and plant closures.
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