Sharp drops in GDP across Europe are now pushing down revenues for businesses, restricting cash flow while increasing pressure on businesses to manage their cash and liquidity more efficiently.
The long-term economic effects of Covid-19 on European businesses are uncertain. But in the short-term, the crisis is already affecting consumers, leading to increased negative financial pressure and wellbeing. Lower disposable incomes are impacting consumers’ ability to pay invoices on time.
Recession is the top challenge for companies during COVID-19, with 44% citing it as having a severe impact on their business, up from 26% pre-crisis
- More than half (56%) say their country is already in recession or will be within a year (2019: 28%)
- COVID-19: pre: 42%, during: 64%
- Italy: 83%, Belgium/Slovakia: 81%
- 4 in 10 (38%) say that a recession will have a severe impact on their businesses
- COVID-19: pre: 26%, during: 44%
- Hospitality and leisure rank highest (42%)
- 57% rank risk of a pan-European recession in the top 3 payment challenges over the next twelve months
- COVID-19: pre: 41%, during: 66%
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The full whitepaper will be available on July 2nd here: www.intrum.com/epr2020-whitepaper