Swedish bank reveals how COVID-19 impacts local business

The pandemic has a significant effect on large companies, creating numerous concerns

Swedish bank

Swedish bank reveals how COVID-19 impacts local business. Source: shutterstock.com

According to Riksbank, parts of the manufacturing industry started factories’ closures in Sweden amid coronavirus outbreak. The reason for that is the restrictions preventing staff from getting to their workplaces and to closed borders preventing transportation.

Besides, several consumer-related retail and services companies claim that changed consumer behavior has led to a shift in developments. As a result, it led to a rapidly falling demand.

As to retail and services companies, they are trying different ways to decrease their fixed costs to meet the lower demand. This way, they are negotiating rents and have cut back on temporary staff.

What is more, they are giving notice of redundancy to permanent employees. Despite the fact, several manufacturing companies haven’t faced the need to reduce their workforces, they think they may need to do so later.

Riksbank also found that some companies consider that the terms for financing have deteriorated and a shortage of liquid funds is seen as the biggest issue.  Besides, it is difficult for them to finance themselves by issuing commercial paper or bonds.

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