Polish companies suffer from coronavirus COVID-1
The restrictions introduced in March 2020, resulting from the prevailing COVID-19 corvirus epidemic, hit Polish entrepreneurs with a ricochet. Only in March entrepreneurs submitted a total of 58,700 applications for suspension or termination of their activity. 80% of these applications concerned the suspension of business activity. In the analogous period of 2019, entrepreneurs submitted a total of 31,400 applications for suspension or termination of business activity, 57% of which concerned the suspension of business activity.
The Ministry of Development indicates that entrepreneurs, by submitting applications for suspension and termination of their activity, thus protect themselves against bankruptcy. Thanks to the suspension of business activity, entrepreneurs are exempt from paying social security contributions or advance payments for income tax. They also do not have to submit ZUS or VAT returns. On the other hand, the regulations allow resuming business activity at any time.
In turn, the announcements published in Monitor Sądowy i Gospodarczy show that 188 companies declared bankruptcy in March. Most of them were companies from the transport, construction and catering industries.
Piotr Arak, Director of the Polish Economic Institute indicated that if we manage to “unfreeze” the economy at the end of April, we still have a chance that the Polish economy will not shrink in 2020. On the other hand, if the situation extends to mid-2020, the Polish economy may shrink even by 10%. Currently there is talk of a recession even 4.7%. These estimates may still change as the situation develops.