Business Impairments, Liquidity and State Aid

Special Survey on the COVID-19 Crisis as Part of the WIFO-Konjunkturtest
According to the results of the fifth special survey on the COVID-19 crisis as part of the WIFO-Konjunkturtest of February 2021, 72 percent of companies had faced restrictions on their business activities in the past three months.

The most important restriction was the reduction of orders (42 percent). Companies in industries directly affected by countermeasures to fight the pandemic mentioned closures ordered by the authorities. Supply chain problems, payment delays. problems in hiring new staff and financial bottlenecks were also reported. Although liquidity assessments have not deteriorated dramatically compared with late summer 2020, 19 percent of companies in February reported they would face financial distress unless their business activity develops better than expected. Of the relief measures, COVID-19 short-time work is particularly often used, followed by tax deferrals and the Fixed Cost Allowance (Phase I).

Dr. Werner Hölzl
Industrial, Innovation and International Economics