Left Menu
Development News Edition

Italy's firms could lose up to 18% of sales this year due to virus - Cerved

Reuters | Milan | Updated: 17-03-2020 19:00 IST | Created: 17-03-2020 19:00 IST
Italy's firms could lose up to 18% of sales this year due to virus - Cerved

Revenues at Italian companies could fall up to 17.8% this year compared to 2019, with tourism and the automotive sector being hurt the most by the spread of coronavirus, credit rating group Cerved said on Tuesday. Analysts have said the crisis linked to the infectious disease will plunge Italy - hit by the worst outbreak of coronavirus in Europe - into its fourth recession in just 12 years and batter company balance sheets. The Milan bourse has fallen 40% in barely three weeks.

"The spread of Covid-19 is probably the most important shock to our economic system since World War Two," Cerved says. Under the worst-case scenario considered by Cerved's 'Industry Forecast' the virus outbreak will last the whole year, leading to "a complete isolation of the Italian economy" but a rebound is expected in 2021.

Companies would not, however, return to the level of their 2019 revenues by then and sales at the end of 2020 year would be down 17.8% year-on-year. If the crisis lasts the whole year the over 750,000 companies in some 200 sectors considered by Cerved would lose 650 billion euros in 2020 and 2021 combined, compared to if there had been no outbreak.

Under this scenario, sales in the hotel industry are expected to fall 73% while those in the automotive and transport industries would be down some 50% this year compared to 2019, Cerved said. Conversely, sales in e-commerce, food delivery and wholesale pharmaceutical companies would rise 55%, 23% and 14% respectively.

Alternatively, in a baseline scenario - which assumes that the coronavirus crisis will be resolved by May - firms would lose 7.4% of their revenues this year compared to 2019. They would then recover in 2021 with revenues up an estimated 9.6%, taking them above 2019 levels. In this more optimistic scenario, Italian companies would however lose 220 billion euros this year and a further 55 billion in 2021 compared to a 2020 without any crisis.



Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...


Latest News

I too was a victim of racism, says Chris Gayle

Star West Indies batsman Chris Gayle on Monday said he has faced racist remarks several times in his career because of the colour of his skin, claiming that the gentlemans game was not free of racismGayle did not elaborate what he was told ...

Pak violates ceasefire in J-K's Poonch

Pakistan on Monday violated ceasefire along Line of Control LoC in Mankote sector of Jammu and Kashmirs Poonch district. The ceasefire violation took place at around 830 pm when Pakistan Army resorted to firing with small arms and intense s...

UK PM plans Brexit talks with EU's von der Leyen, warned to reach deal pre-autumn- FT

British Prime Minister Boris Johnson is planning to hold Brexit talks with European Commission President Ursula von der Leyen in June, with UK officials warning Johnson that an agreement was needed before autumn, the Financial Times newspap...

Pune COVID-19 cases mount to 7,826; death toll 345

The number of COVID-19 cases in Maharashtras Pune district went up by 76 in the last 24 hours to 7,826 on Monday, a Health official said. With eight more people succumbing to the viral infection, the number of fatalities rose to 345, he sai...

Give Feedback