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Sunday, April 11, 2021

The Dramatic Consequences of the Lockdown in Thessaloniki According to INEMY-ESEE Data

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Data from INEMY-ESEE (Institute of Commerce and Services), shows the effects of the “lockdown” in the co-capital Thessaloniki.

They write and erase in the financial staff the cost of the new lockdown in half of Greece, but also the very strict measures in the other half of the country. With each passing day, more and more regions get in the “red”, with the government “exorcising” every scenario of imposing a lockdown in Attica, which contributes to half of the country’s GDP, i.e. almost 90 billion euros.

An example of the catastrophic consequences of lockdowns on the economy is the closure of Thessaloniki. According to the data processed by INEMY-ESEE, the consequences are a microcosm of what can happen if a “lockdown” enters Attica.

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The lockdown in the co-capital concerns 70% of the retail companies in the area and 20,548 employees, who will be remunerated with the special purpose allowance of 534 euros per month. The number of employees in the open business is 24,018, which means that almost one in two will be paid for a month with the government’s emergency allowance, an amount with which it will not be able to cover even basic needs.

According to INEMY-ESEE, the lost incomes of employees who will be suspended can negatively affect the companies that will remain open (e.g. supermarkets, pharmacies, grocery stores), with their turnover declining , raising the cost of local lockdown. The same research shows that out of the 14,417 retail businesses in Thessaloniki, only 4,370 will remain open. The 10,047 will put a temporary “lockdown”, which reflects the magnitude of the crisis in the market of central Macedonia.

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The numbers are shocking considering the real numbers. The turnover of the companies that will remain open is 3.48 billion euros per year and those that close have an annual turnover of 1.21 billion euros. In other words, according to the first estimates, one in four euros of the turnover in the retail trade of Thessaloniki will be lost in November.

Only for November, a month in which volumes are high due to the period of intermediate sales (discounts) that started last Monday, although the lockdown came, without taking into account the seasonality (e.g. “Black Friday”), it is estimated that lost on the market alone in retail trade an average of 101,300,000 euros, according to the first forecasts of INEMY-ESEE.

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Thessaloniki corresponds to 8.9% of GDP, i.e. it contributes 16 billion euros per year to the Gross Domestic Product. The importance of the regional unit of Thessaloniki is indisputable, as it contributes 65% of the GDP of the Region of Central Macedonia.

However, the lockdown affects not only the retail companies but also the catering, which has put a “padlock”, as well as many more companies, which will be forced to either work telework – dropping productivity rates – or put employees on “suspension mode”, from the moment that the turnovers will be zero and the people will live on 17.5 euros per day or 534 euros per month.

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