AHK Azerbaijan member companies assessed the economic impact of the coronavirus pandemic -

AHK Azerbaijan member companies assessed the economic impact of the coronavirus pandemic

AHK Azerbaijan conducted a flash survey among its member companies
to gauge the initial impact of COVID-19 in the business environment

The sudden spread of COVID-19 has not only claimed lives, it is having an unprecedented
impact on global economic activity. The severity of the shock has triggered strict
containment measures across the globe, such as quarantines, border closures, and travel
bans curtailing mobility and leading to substantial production disruptions and output
losses. Azerbaijan followed the suit and imposed a special quarantine regime across the
country to tackle the further spread of the new coronavirus. A vast majority of AHK
members are noticing the critical or medium impact of the pandemic and resulting
prevention and control measures on their businesses. Not surprisingly, these shocks are
particularly acute in some specific sectors such as construction, retail, tourism, and
hospitality. These observations emerge from a flash survey recently conducted by the
German-Azerbaijani Chamber of Commerce among its 140 members.

Companies are severely hit by the lower demand for products and services. As a direct
consequence of the spread of the coronavirus, every third AHK member plans to lower its
business performance target set for 2020. In this context, companies intend to rely on
government support and believe that flexible and timely policymaking interventions will be
essential to create the conditions for quick economic recovery. Questioned about the most
important measures that the Azerbaijani government should introduce to support
businesses, for 70% of responding AHK members, tax holidays or deferral of payments is
the primary condition.

It is reassuring that despite tempered performance and possible future challenges, almost
half of the surveyed AHK members are NOT planning major cutbacks in their employment
strategies this year. It is worth mentioning that AHK members claim to be supporting the
government in its mission to contain the spread of Covid-19 in the country, as well asidentify key action areas for economic recovery associated with this. Thus, 22 out of 60
surveyed AHK members claim to have made donations to Coronavirus Response Fund
established by the decree of the President in March 2020. A large number of other
respondents claim to have supported the government through consultations regarding
reforms and economic stimulus measures.

“We hope that this Survey will be a useful tool and reliable source of feedback in providing
state authorities and policymakers with deeper insights into the current situation and
business needs. Thus, it will contribute to the government’s efforts to mitigate the economic
and financial disruptions and to move to rapid recovery. To do this, we are always ready to
continue our constructive dialogue with the Azerbaijani government to map the best way
forward for the common benefit of all economic subjects or formations.” - stated the CEO of
the AHK Azerbaijan, Mr. Tobias Baumann.

Detailed survey findings are available to download on our Website.

About AHK Azerbaijan

The German-Azerbaijani Chamber of Commerce (AHK Azerbaijan) is the official representation of
the German economy in Azerbaijan providing information services and support to the companies in
their market and business research since 2012. The AHK Azerbaijan emerged from the GermanAzerbaijan Business Association (DAWF) founded in 1999. With over 140 member companies, the
AHK Azerbaijan is the most powerful European economic association in Azerbaijan. Companies can
particularly benefit from the well-developed network of AHK in the economy and politics of
Azerbaijan. While actively representing the interests of its member companies, the AHK Azerbaijan
also offers a wide range of reliable business and legal services.

 
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