9% of Companies Considering Permanent Closure because of Coronavirus

A study conducted by the International Trade Center (ITC), a joint agency between the World Trade Organization (WTO), the United Nations (UN), and the Department of Trade and Industry (DTI), says the pandemic is pushing 9% of companies in the Philippines to consider permanent closure.

Small and medium enterprises are surveyed to be twice as likely to predict closing their doors within the next 3 months.

The study continues to say that 99% of businesses said they were affected by the pandemic, 68% saying they were severely affected.

Pamela Coke-Hamilton, ITC Executive Director, said “The COVID-19 severely affected the economy and the pandemic is expected to have serious negative implications for GDP (gross domestic product) growth as well as for employment. ITC data show that virtually all companies have been impacted by the pandemic. Effects were from lower sales to difficulty in access and inputs, and clients not paying bills,”

Of the 515 firms interviewed for this survey, 88% of companies saw year-on-year decline on sales, with only a third of firms adopting a resiliency strategy to weather out the pandemic.

Source: ABS-CBN