International News

The Impact Of COVID-19 On The European Economy

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Author : Bozhou Marine
Update time : 2023-05-26 11:04:09
The latest report released by the German credit agency "Creditreform" (Creditreform) shows that more and more companies are filing for bankruptcy in Europe.

According to the report, nearly 140,000 companies will go bankrupt in 2022 in 14 Western European EU countries, as well as Norway, Switzerland and the United Kingdom.
This figure represents an increase of 24.2% compared to the previous year.
The largest increase in the number of bankrupt companies was in Austria, with an increase of 59.7% over the previous year. This is followed by the UK (55.9%), France (50%) and Belgium (41.7%).

In Eastern European EU countries, the number of corporate bankruptcies increased by 53.5% year-on-year to more than 60,000, and the total number of companies in Eastern and Western Europe added up to nearly 200,000.

Retail and hospitality sectors hit hardest

Individual sectors were hit particularly hard: first retail and hospitality bankruptcies rose by 34.5%, followed by construction (24.7%), services (20%) and manufacturing (13.1%).

Before the crisis, Europe's economy had been growing steadily. However, the outbreak of the COVID-19 epidemic has dealt a huge blow to the entire European economy. Industries such as tourism and retail have basically fallen into a dead silence during the epidemic.

The retail and hospitality industries are still affected by the outbreak. Restaurants, shopping malls, hotels and other entertainment venues all need to implement social distance, which makes their operating costs continue to rise.
So, in these industries, some small companies and even large companies are seeking bankruptcy filings because they still face operational problems.

In addition, many companies were unable to produce products and provide services due to the closure of studios during the epidemic. In this regard, several transnational corporations suffered considerable losses as a result.

In general, the outbreak of the epidemic has dealt a huge blow to the entire European economy, and hundreds of thousands of companies face the possibility of bankruptcy.
Although European governments have adopted a large number of countermeasures, it is difficult to prevent the risk of corporate bankruptcy, which will have a profound impact on the recovery and development of the entire European economy.

In this case, the company needs to rely on other areas for business transformation to achieve the reopening of the production line. | Marine Light

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