Turnover of companies takes a dive due to COVID-19: survey

A survey conducted for the Business Centre Club and 4 Business & People shows the scale of the impact the coronavirus pandemic has had on the Polish economy. 82 percent of the companies surveyed report a lower turnover this April compared to the same month last year.

Comparing their company’s turnover to April 2019, 14 percent of respondents stated that it hasn’t changed, 16 percent reported a fall, while 4 percent responded that turnover had increased.

14 percent of respondents stated that their turnover had decreased between 50 and 69 percent and 7 percent said that turnover was down by 70 percent or more.

The authors of the report say that the road to recover will be difficult as problems lie ahead, writing "This clearly indicates a weaker condition of companies and the economy. We anticipate further deterioration of business climate indicators. According to BCC's forecasts, maintaining liquidity has become a priority for companies. This is the biggest challenge today".

Only one-third of the polled companies say that they don’t have any problems with financial liquidity. 60 percent of respondents have no plans to reduce their number of employees.

The survey was conducted at the turn of April and May among 600 members of the Business Centre Club as well as non-affiliated entrepreneurs. Coronavirus lockdown-measures were introduced in Poland by mid-March. As most businesses were allowed to reopen in May, April is widely expected to be the zenith of the fall in turnover for Polish companies.