22:29 23 May 2019
Euler Hermes: Retail sector problems growing
As many as 73 companies went bankrupt in April 2019, which means a decrease of 4 percent. The problems of the retail sector are still growing, though, according to rating company Euler Hermes.
Euler Hermes said that the increase in the number of insolvencies in trade and in services was perhaps not spectacular - a dozen or so percent, but took place in a situation of dynamic growth in consumer demand.
“The reason for the problems of insolvent companies was not in the fall of demand, but in an even faster increase in costs, especially labor costs. The possibilities of compensating for domestic labor shortages by the inflow of workers from neighboring countries are running low” Euler Hermes stated.
(PAP)
