economy It is stated that the Valencian Community will close the year with a growth of over 2 percent. This is the forecast reflected in the ‘Situation Report and Economic Perspectives’ of the Valencian Community Business Confederation (CEV) corresponding to the third quarter of 2023. The autonomy economy develops at a rate of 0.3 percent quarterly and 1.5 percent annually, As estimated by the Independent Authority for Accountability (AIReF).
Although this progress is higher than expected at the beginning of the year, significantly higher than that recorded in the Eurozone and in line with the average growth of the Spanish economy, analysis of the latest data and perspectives conveyed by sectoral organizations, CEV states:“In the short term, the Community’s economy will continue to slow down, thus reinforcing the trend that has started since the beginning of the year.”
Therefore, the report shows that lower global growth will affect most manufacturing branches; The services and construction branches will be affected by “still high levels of inflation and the increase in financial costs”, which will deplete consumption and investment.
business problems
Same way, The report draws attention to the problems faced by companies such as high energy, finance, raw material and component costs and a new increase in labor costs; Not to mention the difficulty of finding qualified personnel. For 2024, in an environment of lower interest rates, the central scenario points to positive economic growth similar to that of Spain as a whole and above the euro zone average, which could be in the range of 1.5% to 1.75%.
For all this, CEV insists on the need to create an enabling environment for business activities and investments that “supports the productivity and competitiveness of our economy.” Likewise, it is recommended that labor costs be in line with those foreseen in the V Employment and Collective Bargaining Agreement, that public contracts be indexed and assume cost increases, and that tax pressure be reduced to the average levels of OECD countries. .