One third of AmCham members expect a decrease in revenues by more than 30%, while 49% members expect a decrease to be from 10 to 30%, according to a survey which has been conducted by the AmCham Executive Office among member companies, in order to collect information about the economic impact on their operations due to the COVID-19 pandemic.

AmCham members expect to cover the decrease in revenues through: reduction of operating costs 78%, accumulated reserves from earlier periods 56%, Government measures 42%, cutting salaries 31%, and laying off employees 17%.

From 78% of surveyed members, that expect reduction in operating costs, 20% said they expect the decrease to be higher than 30%, while 47% said it would be between 10 and 30%. Therefore, we can speak about a very significant impact on operational activities.

On the other hand, it is encouraging that member companies have reserves, thanks to good financial performance in previous periods, that they can use as one of their recovery instruments as indicated by 56% of them. Also, the Government’s current and future measures are listed as the third recovery instrument, which was pointed by less than half of AmCham members. Namely, 42% of AmCham members have chosen these measures as one of the tools for overcoming business difficulties.

From 31% of member companies, that expect cutting salaries, 56% of them say that the reduction will be at least 10%, while from 17% of the members that expect laying off employees, 60% expect a reduction in number of employees to be at least 10%.

When asked how current situation is affecting their business, companies cited the most: cancellation of internal and external events, cancellation of internal and external travel, work from home, but also 43% of them reported loss of clients, and 13% closure of offices (production facilities).

AmCham Executive Office conducted the survey in first two weeks of April. Half of the AmCham members companies participated in the survey.

The purpose of the research is to provide decision makers with a better overview of the expected impact of the COVID 19 pandemic on the business environment, as well as to help in creating measures and adapt them to the current macroeconomic situation of Montenegro.

The American Chamber of Commerce in Montenegro is strongly committed to the active and quality private-public cooperation and mutual understanding, which, especially in such challenging situation, should lead to the best possible legal norms, as well as their implementation, creating in that way benefits not only for member companies, but also for the whole business and social community in Montenegro.