Major turnover slump in January-May
Enterprises in the sectors of tourism and arts and entertainment recorded a significant reduction in turnover over the first five months of the year, as a result of the lockdown and the suspension of operation of many companies in that period.
According to the weekly bulletin of financial developments published by Alpha Bank, the biggest decline in turnover was recorded in the sectors of real estate property management (down 71.3%), in accommodation and food services (61.4%), arts, entertainment and recreation (38.9%), administrative and supporting activities (27.6%), and transport and logistics (22.7%).
As the bulletin points out, the contribution by the domains of accommodation supply and food catering services, as well as transport, to the gross added value of the economy amounts to 6.8% and 7% respectively.
In fact the level of turnover during the first five months of the year for the sector of accommodation and food service was considerably lower compared to other sectors of the economy, both due to the seasonal character of tourism and the general recession that the sector suffered due to the onslaught of the pandemic.
On the other hand, the turnover of companies active in retail and wholesale commerce as well as in manufacturing recorded a smaller decline in comparison with the sectors mentioned before in the January-May period, with wholesale falling 8.8% and retail shrinking 13.9% respectively on an annual basis. The shares these sectors have in the economy’s gross added value amount to 10.5% and 10.8% respectively; therefore due to their significance they are expected to weigh heavily on the impact of the gross added value of the economy for 2020.
Nevertheless, the first signs after the resumption of operation of commercial stores in May were positive, without this meaning that their activity has reverted to pre-crisis levels.
There was also a considerable fall in the turnover of the sectors of electricity, natural gas and air-conditioning, amounting to 12% year-on-year, and of construction, at 13.8%, because of the measures that kept the Greeks at home.
In its bulletin Alpha Bank notes that forecasts about the losses of the main sectors of the Greek economy in 2020 vary considerably and include a great degree of uncertainty due to the unpredictable course of the pandemic.