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The short-term impact of the COVID-19 pandemic on Portuguese companies

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Listed:
  • Ana Sequeira
  • Cristina Manteu
  • Nuno Monteiro

Abstract

The COVID-19 pandemic and the necessary containment measures have caused a very severe shock on Portuguese businesses. This article uses the results of the Fast and Exceptional Enterprise Survey – COVID-19 (COVID-IREE) to characterise the short-term economic impact of the pandemic, in a context in which several support measures have been adopted by public authorities. The main results show a very significant decline in companies’ activity in the second quarter of 2020, with very adverse effects on their liquidity. Accommodation and food services stands out as the most affected sector. In this period, the impact on employment was relatively contained. However, there were marked declines in effectively working staff, albeit partially offset by remote work and alternate presence schemes in companies’ facilities. Finally, the survey reveals that companies in more fragile conditions were the ones that resorted the most to the support policy measures and that these measures played a very important role in safeguarding companies’ financial sustainability and preserving employment.

Suggested Citation

  • Ana Sequeira & Cristina Manteu & Nuno Monteiro, 2020. "The short-term impact of the COVID-19 pandemic on Portuguese companies," Working Papers o202003, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:o202003
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    File URL: https://www.bportugal.pt/sites/default/files/anexos/papers/op202003_eng.pdf
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    References listed on IDEAS

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    1. Catherine Buffington & Carrie Dennis & Emin Dinlersoz & Lucia Foster & Shawn Klimek, 2020. "Measuring the Effect of COVID-19 on U.S. Small Businesses: The Small Business Pulse Survey," Working Papers 20-16, Center for Economic Studies, U.S. Census Bureau.
    2. Alexander W. Bartik & Marianne Bertrand & Zoë B. Cullen & Edward L. Glaeser & Michael Luca & Christopher T. Stanton, 2020. "How Are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey," NBER Working Papers 26989, National Bureau of Economic Research, Inc.
    3. John Eric Humphries & Christopher Neilson & Gabriel Ulyssea, 2020. "The evolving impacts of COVID-19 on small businesses since the CARES Act," Working Papers 2020-48, Princeton University. Economics Department..
    4. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2020. "COVID-19 Is Also a Reallocation Shock," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 329-383.
    5. Fairlie, Robert W, 2020. "The Impact of COVID-19 on Small Business Owners: Continued Losses and the Partial Rebound in May 2020," Santa Cruz Department of Economics, Working Paper Series qt21f993s2, Department of Economics, UC Santa Cruz.
    6. Lukas Buchheim & Jonas Dovern & Carla Krolage & Sebastian Link, 2020. "Firm-Level Expectations and Behavior in Response to the Covid-19 Crisis," CESifo Working Paper Series 8304, CESifo.
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    Cited by:

    1. Nuno Silva & Pedro Dias Moreira & Sónia Félix, 2021. "On the measurement of Portuguese firms’ fixed operating costs," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    2. Valerija BOTRIĆ & Tanja BROZ, 2022. "Gender disparities in COVID-19 job losses across European post-transition economies," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 13, pages 160-184, December.

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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