oscar virtual baldisa
alicante
Monday, September 23, 2024, 1:50 p.m.
comment
You must register to access this feature.
Sign in
copy link
X (old Twitter)
telegram
thread
The region’s economy is doing better than expected. The second quarter of 2024 ended with better-than-expected quarterly growth of 0.7% and annual growth rate of 2.8%, according to data from the Valencian Economic Confederation (CEV). The federation said these figures were “above expectations and represent a turning point compared to the previous trajectory and mark the beginning of a period of gradual economic slowdown in Valencia.”
Therefore, the industry group’s forecast is for a growth of around 2.7% by the end of the year. From a demand perspective, the introduction of the NG Fund, along with improved financing conditions, is expected to encourage private consumption and investment.
However, growth “will continue to create jobs and reduce unemployment overall, although it will not be uniform across sectors and their production units.” CEV assures that the expected extension of the tourist season will “promote external demand for services, but demand for goods will still be hit by the prolonged weakness in major destination markets.”
Ricardo Miralles, director of economics and analysis at CEV, expressed concern about the structural situation on the supply side, particularly in the primary and manufacturing sectors, which are going through difficult times. “Other traditional sectors such as “textiles” and “leather and footwear” show worse conditions and worse ratios than the national average,” Mirales emphasizes.
Regarding the future outlook, the Director-General of the Economic Affairs Bureau explained that the growth rate is “lower than the previous quarter, but it is noteworthy because of the high level of heterogeneity among production sectors.” According to an economic outlook report prepared by CEV, businesses continue to face “increasing labor costs and high levels of raw material prices.”
CEV argues that all production sectors are having trouble finding talent, and criticizes unfair competition and continued “excessive regulation.”
For the future
In light of the conclusions drawn in the report, the business group emphasizes the need to “maintain a favorable environment for business activities and investments that fosters the increase in the productivity and competitiveness of Valencian companies”.
Mirales therefore argues that certain sectors and production sectors facing deep structural changes and particularly disadvantageous conditions need support from the regime. ”
“At the regional level, this support will not be possible unless regional financial systems provide the necessary resources to adopt economic policy instruments that support these sectors,” the CEV said. “The necessary changes should be made.” It is multilaterally negotiated and includes the forgiveness of some of the Generalitat’s debts arising from a transitional equalization fund and outdated financing facilities. ”
Comment Report a bug
Source link
