The Economic Situation and Perspectives Report for the second quarter of the Valencian Community Business Confederation (CEV) predicts that the economy of this region will grow by approximately 4% throughout 2022. In this way, the increase will be higher. Despite the escalation of the war and its impact on the energy and raw materials markets, the prolongation of the problems in supply chains, the persistence of high inflation levels and the increase in interest rates, it causes a general slowdown in the economies of Spain and the euro area average and greatly increases the uncertainty levels for the near future. Behind this growth is the good performance of tourism and some manufacturing sectors.
Despite the disturbing elements from abroad, normalization of activity at the domestic level allowed the Community of Valencia economy to show a remarkable recovery in the second quarter. Specifically, on the demand side, economic growth in the second quarter dynamism of the foreign sector, the recovery of household consumption and private investment, especially in housing, compared to falling public consumption. On the supply side, The activities that most drive growth have been hospitality. – activity levels close to a normal year have shown remarkable dynamism, with some manufacturing branches such as transport and warehousing, construction and textiles and clothing, leather and footwear and shipping materials.
However, after the analysis made by taking into account the future expectations of the sectoral business organizations of the Valencian Community, the report shows that the regional economy will continue to slow down like the national economy in the coming quarters, but it will still continue to slow down. at rates consistent with job creation.
Along these lines, perspectives suggest that the Valencia Community economy will maintain an acceptable tone in terms of activity and employment in the third quarter, but they have already shown it outside of tourism-related branches. clear signs of slowing down.