Q2 costs enterprises €20 billion

Q2 costs enterprises €20 billion

Greek enterprises lost 20 billion euros in turnover during the second quarter of the year, according to the Hellenic Statistical Authority (ELSTAT), while National Bank of Greece estimates that turnover losses over the year as a whole will come to some €50 billion.

ELSTAT data show that the pandemic and the measures taken to contain it paralyzed enterprises’ economic activity in the April-June period and dealt a blow to their turnover.

The sector hit hardest was wholesale and retail commerce, with its companies seeing turnover drop by almost €6 billion on an annual basis: Their turnover came to €25.5 billion against €31.4 billion in the second quarter of 2019, a decline of 18.8%.

The manufacturing sector suffered a €3.6 billion drop, while restaurants and hotels saw their turnover shrink by €2.6 billion year-on-year. Transport and logistics companies suffered a €1.7 billion decline, and credit and insurance businesses had €1.38 billion shaved off their quarterly turnover.

In total, corporate turnover in the quarter that included the lockdown amounted to €58.9 billion, recording a 25.1% decline from the €78.8 billion figure in the same quarter last year. In percentage terms the worst-hit sectors were food service and accommodation (down 78.8%) and arts and entertainment (down 53.2%). The primary sector resisted the pressure somewhat, with losses of just €51 million compared to last year.

ELSTAT data for July, well after the end of the lockdown, showed that large companies took a €4.2 billion hit amounting to a year-on-year drop of 17.5% in the first month of the third quarter.

Meanwhile a study by National Bank of Greece points to a €50 billion reduction in corporate turnover in 2020 as a whole. It also warns that unless the effects of the recession are tackled, it will exhaust all the strength of even the healthiest enterprises. It will also lead to the forfeiture of obligations, company closures, shrinking employment and an even deeper recession, NBG said.

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