Thousands of Malaga Businesses Have Not Survived the Pandemic

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Thousands of Malaga Businesses Have not Survived the Pandemic
Source: wikipedia

Thousands of Malaga businesses have not survived the pandemic. The tremendous impact of coronavirus on the economy has led to 17 per cent of Malaga companies with workers that were in operation at the beginning of the pandemic have stopped being active, according to the study ‘Demographic situation of companies’ published by the National Institute of Statistics (INE). The data shows that, of the more than 40,150 employer units registered at the beginning of April of last year, just after the declaration of the State of Alarm, some 33,200 remain with an estimated 7,000 having ceased activity.

As reported by La Opinion de Malaga, these numbers do not show the new additions that simultaneously occurred throughout the quarters and that come to partially compensate for the collapse. In fact, the INE has almost 42,400 businesses in the province at the beginning of 2021, including new companies created or the possible reactivations from previous months.

The National Institute of Statistics commented on their study, “The data given by this statistic is not the most correct number to talk about company cancellations in general, because there are unregistered registrations and cancellations along the way, but it is the most correct figure to see the number of companies that have survived of those that were registered at the beginning of the year, which is the ones that have been followed up.”

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By size of the companies, the companies most affected were micro-small and medium businesses, which is logical given their weight in the productive fabric of Malaga. As a result, of the almost 7,000 companies that terminated their activity, 6,400 (that is, nine out of 10) were firms with up to five workers. The micro-SME segment with which Malaga started the pandemic suffered a 20.7 per cent drop, from 30,900 to 24,500.

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Diane is from Limerick, Ireland and has previously lived in Seville. Having graduated with a Masters in Journalism and Public Relations she has a keen interest in digital media. As well as her passion for news, she enjoys learning about human psychology, practising pilates and has a soft spot for tapas!

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