The Valencian employers' association yesterday issued its latest current situation report on the Valencian economy and although they warn of its "dynamism", they ask for attention to the behavior of the manufacturing industry because, warns its director of Economics and Analysis, Ricardo Miralles, "our economy has already entered the path of slowdown.
However, before seeing the glass half empty, the Valencian Business Confederation (CEV) maintains an optimistic tone because "the official data is clear and goes to say that the Valencian economy has shown a high degree of dynamism." Miralles' assessment alludes to the "remarkable and sustained progress" of the regional economy in the second quarter of the year with 0.5% growth (cites AIReF), one tenth above the national average (0.4% ) and four tenths above the economies of the Euro Zone (0.1%).
Erected as the third most exporting region and with a positive external balance, the CEV does not lose its restraint here either and points out that, despite the good evolution of the second quarter, "from the analysis of the most recent data and the perspectives conveyed by the organizations sectors, it can be inferred that the regional economy has already entered a path of slowdown.
All, despite the obvious boost in services and tourism, which allow the Valencian economy to maintain its momentum. For example, the services sector presented positive activity data at the end of the second quarter of 2023, although less favorable than those of the previous quarter, they warn in the aforementioned Situation Report.
Regarding tourism, they include the assessment of the Hotel and Tourism Business Association of the Valencian Community (HOSBEC), which indicates how the first semester closed with a cumulative occupancy rate per room of 63.8% in the Valencian Community, among others. references.
However, the Valencian hotel association emphasizes that, although “the 2023 summer season has improved the business results of the previous year, and in many cases the levels of 2019 have been reached, the pre-pandemic profitability has not yet been achieved. due to the increase in production and salary costs.”
The Valencian Community Hospitality Federation (FEHV) also corroborates the official data and considers that “the evolution of the sector in the first half of the year has been good, although a moderation is observed in most indicators.” Foreign tourism remains the great lifeline of the sector, since the FEHV observes a "containment" in spending, especially by national tourists.
In this scenario, the CEV considers, already in an environment of economic slowdown, that the most disturbing elements come through rising costs and the difficulties, already explained by the business sector on numerous occasions, of the lack of labor. construction site.
They also add the political situation as an ingredient to take into account. "It is necessary to put an end to the uncertainties derived from a government in office," says Ricardo Miralles. The employers' association reminds again that the business sector needs the activation of measures that "make it possible to recover levels of competitiveness in the internal market and in international markets, boost its activity or achieve greater and better use of the Next Generation Funds."
