After the devastating impact on the Spanish economy of Covid, most companies hope to see some light at the end of the tunnel from 2022. This is reflected in the Outlook Spain 2021 report , carried out by KPMG in collaboration with CEOE, which includes that 66% of companies expect to return to pre-pandemic billing levels starting next year.
Although business confidence continues to be negatively affected by the health crisis, the report reveals a slight improvement compared to the previous survey carried out by KPMG last July. Seven out of ten businessmen or managers consulted still rate the economic situation as bad or very bad. However, with an eye to the next 12 months, 39% of companies trust that it will improve, compared to 34% who expected it in July 2020. In addition, 61% expect to start recovering their turnover as throughout this 2021.
The effects of the crisis caused by the spread of the virus on business are more than evident in the document, based on a survey of 1,400 businessmen and managers from 25 sectors. 44% of companies describe their current situation as “sensitive”, but hope to overcome the crisis, while 5% call it “worrying” and believe that their survival is at risk.
Half recognize that they have been forced to adjust their workforce, a figure very similar to those that have had to cut investments, 47%, and production costs, 49%. By 2021, prospects improve and 29% of employers anticipate that their number of employees will increase, compared to 32% who plan to reduce it and 38% who indicate that it will remain the same. In July of last year, only 13% of companies expected an increase in hiring for next year.
Living with the virus
According to Hilario Albarracín, president of KPMG in Spain, the study shows that “companies expect to progressively recover their sales throughout the year, although they are aware that 2021 still presents many unknowns and will be, predictably, a transition period. Most they have to live with the virus for at least 12 months and, despite this, they hope to increase their turnover throughout the year, knowing that it will not be until at least 2022 when sales prior to the pandemic recover “.
The document also confirms that the impact of this crisis has been very different depending on the sector. Those most dependent on mobility and physical presence such as restaurants, leisure, tourism or transport have suffered a more significant deterioration. On the contrary, other businesses such as insurance, technology, pharmacy, energy or asset management have maintained their activity.
In the case of technology, it is the one with the highest percentage of companies that will increase their workforce, 66%. A positive side that contrasts with that of tourism companies, in which almost six out of ten firms estimate that they will reduce their workforce. Other sectors that will experience a year marked by labor restructuring will be banking, with 57% of the entities, and catering, where more than half of the employers will reduce their workforce.