WB study on pandemic’s impact on Greek businesses presented in Athens

The Covid-19 pandemic’s repercussions on Greek businesses were significant, both in terms of turnover and profitability, as well as employment levels, a relevant study, which was presented on Wednesday, revealed.

The study was unveiled during a joint event in Athens by the World Bank and the Athens-based Foundation for Economic & Industrial Research (IOBE).

The focus of the relevant research was on how Greek businesses were affected by the pandemic and how they faced challenges, including access to state support programs, in comparison with other European countries surveyed in the study, i.e. Croatia, Poland, Bulgaria and Romania.

The study was presented by Leonardo Iacovone, a lead economist in the trade, investment and competitiveness (TIC) at the World Bank Group.

The latter cited the very negative results of the pandemic on the business world, which continue to be recorded even today. He also said SMEs were more affected. The proverbial “silver lining on the cloud” was an accelerated digital transformation, he added.

The most significant findings, among others, were that sales in the first half of 2022 were, on average, drastically reduced compared to pre-pandemic levels.

During the pandemic, businesses in the country reported a reduction of 70 percent – the median – and lower profits by 40 percent.

Businesses in Greece fielded better performances than those in Bulgaria and Romania, but worse than Poland and Croatia.

Very small businesses were the most vulnerable during and after the pandemic, with 42 percent of businesses possibly at risk of generating arrears six months after the study’s conclusion.

The pandemic also had a severe impact on employment in the country, with many businesses cutting back staff.