THE number of German investors anticipating a significant decline in sales due to the pandemic has doubled since April, a survey conducted by the German Philippine Chamber of Commerce and Industry (GPCCI) said.

The number of companies expecting sales to drop by more than half doubled to 26% since April, while 30% of businesses anticipate sales to slide between a quarter to half.

Companies that expected no change in sales at all slipped to two percent by June from 18% in April.

The chamber on Tuesday released the result of its new survey conducted between June 5 to 12, collecting 87 responses. This updates an initial survey held in late March and early April.

Most German investors seek the reduction of red tape and an economic stimulus package as necessary for their business as they address the impact of the pandemic.

The survey found that 71% of the companies want government to reduce administrative burdens such as customs, permissions and licenses, while 59% want economic stimulus packages, and 53% are seeking corporate income tax reduction.

“Companies quickly need huge support to tackle these trying times and to emerge more competitive on the international level afterwards,” GPCCI Executive Director Martin Henkelmann said.

Among disruptions caused by the pandemic, 84% said travel restrictions had the biggest effect on their operations. Companies also said they had postponed investment projects (55%), experienced supply chain problems (54%), and cancelled participation in trade fairs and events (54%).

While 39% of respondents said the easing of the lockdown in both the Philippines and Germany was “very helpful,” 47% said that it was “moderately helpful.”

A majority of the respondents are seeing a long supply chain recovery period, with 47% saying that supply chain operations will recover by the end of the year and 30% saying that they expect recovery by June 2021. A quarter believe that operations will recover by September. — J.P. Ibañez

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