The revival that began after the coronavirus pandemic and the desire to experience the first unrestricted summer in the last two years has so far mitigated the harmful effects of the war in Ukraine, with its boost to tourism. But the real effect will become known very soon with the arrival of the expected autumn. A sharp decline in the economy in the Community of Valencia. This is due to a report by the Economic and Social Committee (CESCV) that warns of the rise in poverty as well as the very negative effects on exports, consumption and employment in this region. The situation is alarming enough from the organism Generalitat urged to take palliative measuresenabling the crisis to be overcome both cyclically and structurally.
Recession is not mentioned in the report of the Valencia Community Economic and Social Committee, but the panorama it draws for the coming months allows us to attempt a significant downturn in economic activity. The organization underlines that the conflict of war has negative consequences, especially in the light of the data for the first months of 2022. increase in energy raw material prices and the corresponding increase in inflation. In fact, it was noted that the economic growth of the autonomous region was already declining in the first quarter.
Regarding domestic demand, the report points out that private consumption, which is its main component, will lose its dynamism in the short term due to the increase in uncertainty and above all, the loss of purchasing power and inflation, which brings about stagnation in wages. . The same, he adds, workplace investmentsin a context in which production costs are expected to rise.
With regard to foreign demand, and despite the reduced exposure of Valencia’s foreign trade with Russia and Ukraine, the war may have an effect. negative impact on exports and imports through global supply chains and in some third countries with greater exposure to the two conflict zones. Thus, it was reminded that the Group’s exports increased by only 0.6% in March compared to the previous month’s increases of 4.7% and 6.95% in January and February, respectively.
The Committee also notes that: The war will also have a significant impact on the labor market.. Therefore, it should be noted that despite the reintroduction of the ban on objective dismissals based on an increase in energy costs, although to date there has been no quantitative impact on employment, this measure only affects companies that receive wages of one type. assistance considered in the shock plan to respond to armed conflict.
The body likewise warns of significant increases in food and energy, and as a result. increased risk of povertyespecially in vulnerable consumer groups.
With all this, CESCV calls for short, medium and long-term plans and programs that translate into palliative, situational and structural measures that enable to overcome the crisis and move forward towards a robust, robust, lasting and inclusive recovery, fostering social dialogue and negotiation. among all agents. In this sense, in the Community, it is necessary to take measures against the slowdown in economic growth within the scope of its powers and accelerating the development of so-called strategic and technological autonomy in the field of energy, basic raw materials and food.
Source: Informacion
Calvin Turley is an author at “Social Bites”. He is a trendsetter who writes about the latest fashion and entertainment news. With a keen eye for style and a deep understanding of the entertainment industry, Calvin provides engaging and informative articles that keep his readers up-to-date on the latest fashion trends and entertainment happenings.