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Economics in a picture
Half of Portuguese firms are currently benefiting from the Government support measures arising from the pandemic
04.12.2020
The COVID-19 pandemic and the containment measures imposed to control it have severely affected economic activity. In order to mitigate the negative impact on businesses, the government has announced a number of support measures, among them: (i) the support for progressive resumption of activity/simplified layoff, (ii) the extraordinary incentive for the normalisation of activity, (iii) the moratorium on principal and interest payments on loans, (iv) the access to subsidized credit with State-guaranteed credit lines and (v) the deferral of tax and social contributions.
According to the results of the November edition of the COVID-IREE survey, 50% of the responding firms are currently benefiting from at least one of these measures. This share is slightly higher in small and medium-sized enterprises. The percentage of beneficiary firms varies across measures, ranging from 18% in the case of the support for progressive resumption of activity/simplified layoff to 29% in the case of the moratorium on existing loans. This situation is broad based across sectors of activity, excluding Accommodation and food services. In this sector, the proportion of beneficiary enterprises reaches 81%, with emphasis on the availing of the support for progressive resumption of activity/simplified layoff (57%). This has been one of the sectors most affected by the pandemic, reflecting the impact of social distancing measures and the fall in tourism.
For more details see Fast and Exceptional Enterprise Survey – COVID-19, November 2020 (in Portuguese only), available on Banco de Portugal and Statistics Portugal websites.
Prepared by Ana Sequeira and Cristina Manteu. The analysis, opinions and results expressed herein are those of the authors and do not necessarily coincide with those of Banco de Portugal or the Eurosystem.
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