Province breaks business closing records in the first quarter

The companies very happily promised them when the dwindling covid case signaled a gradual economic recovery. But if there’s one thing this crisis has taught us, at least so far, it’s that it’s too risky to claim victory. And for example, a button. In the first quarter of this year, the province of Alicante broke its special record for liquidation of no less than 388 firms, a record that was not reached even due to the Great Recession of 2008. Most of these closings correspond to companies. who tried to fend off the storm during the pandemic, but had to give up in the end Harmful effects of inflation and war in Ukraine. However, there is also a positive fact that company constitutions are on the rise.

The coronavirus pandemic showed its greatest impact on the economy on the occasion of the first quarantine of 2020, when all activities were paralyzed. From then on, the situation is always improving, with ups and downs caused by internationally imposed restrictions, due to successive virus waves. In any case, the evolution since the second half of last year, which coincided with the vaccination campaigns, certainly invited optimism, as the disease is less common in hospitals and brings with it more cases of the disease. gradual removal of preventive measuresthese served as a drag on the business.

However, once again the predictions did not come true. The most obvious example is the data just released by the National Institute of Statistics (INE) on the liquidation of commercial companies. The province of Alicante noted that no less than 388 signatures were closed in the first quarter of this year, a figure that has never been known during the same period. Initially, a higher number than the other two years affected by the pandemic314 terminations were registered in the first three months of last year, while 292 terminations were registered in 2020.

However, such a high figure does not appear in the historical series. The number of companies closing in the province, which coincided with the great financial crisis in 2008, reached 358, and was recorded at lower levels in the following years. Only in 2013 was there a similar recovery to the current year, but nevertheless of a lower nature and remained at 371.

In seeking explanations, we should refer to two factors that have a strong overall impact on the economy. On the one hand, there is high inflation, primarily due to the rise in energy prices and raw materials, and on the other hand, there is armed conflict in Ukraine that exacerbates the situation. is a panorama of absolute uncertainty.

Economist Francisco Llopis of the Institute for Economic Research, State of Alicante (Ineca), found that most of the liquidations “corresponded to companies that had a hard time throughout the entire pandemic and tended to improve as soon as the situation was expected.” new obstacles that make its continuity impossible“.

Positive data, on the contrary, are company constitutions. As the Real Estate, Trade and Real Estate Registrars Association has progressed before, the number of companies that started walking in the first quarter of this year reached 1,505, an increase of 14.6% compared to the same period of the previous year. Also, this is a striking fact, representing a growth rate five times higher than Spain as a whole.

In any case, Llopis justifies this increase in the fact that the state of Alicante is one of the registrants. further destruction of productive tissue“So it’s currently recovering more heavily than other regions. We’ll see if this trend continues.”

And the forward-drawn panorama is not very encouraging. According to the representative of İneca, “There is a lot of uncertainty. Although it is true that the incidence is lower in health centers, Covid is still among us. On the other hand, inflation is not breathing so far. It is hope. fixed. a summer that seems to be going well in terms of tourismand, as a result, measures taken to control prices”.

Source: Informacion

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