The Alicante province is reporting a swift rebound after the Covid health crisis, with exports showing strong performance and historic growth. In the first half of the year, progress stayed positive, closing with a 19.7% increase versus the same period a year earlier. Yet a blunt warning lingers: inflation and international uncertainty are weighing on competitiveness, and June brought a pause as overseas sales slipped by 8%. The question on many minds is what caused the first setback of the year and what this signals for the upcoming months.
New export data released by the Ministry of Industry, Trade and Tourism cover the first half of the year. The latest figures show Alicante’s foreign sales around 3,567 million euros, roughly 90 percent of the forecast for the period. The year-over-year rise reached 19.7%, while sales were 27% higher than the first six months of 2019, before the pandemic hit. Overall, this looks like positive momentum, though there are worrying signs. The Valencian Community posted a larger regional gain of 24.9% during the same period, driven by increases of 29% and 24.5% in Castellón and Valencia respectively, underscoring divergent regional dynamics within the wider area.
April and May helped Alicante maintain an upward trend, but June marked a slowdown, with a drop of 8% in foreign sales from May’s level, totaling 596 million euros. The declines were most pronounced in manufacturing-linked sectors. Shoes, traditionally a main export for the province, slipped from 103.4 million euros in May to 89.3 million in June. Textiles also contracted, moving from 54.3 million to 47.4 million. Food and beverages fell from 166 million to 143 million; non-ferrous metals declined from 39.6 to 36.2; and toys dropped from 12.1 to 11.4. On the brighter side, machinery exports rose from 12.0 to 14.9 million, cars and motorcycles from 12.5 to 13.4 million, and furniture from 10.9 to 11.1 million. These movements suggest a mixed but structurally resilient export base that can rebound with stable external conditions.
Paloma Taltavull, a professor of Applied Economic Analysis at the University of Alicante, notes several factors behind the downturn, with inflation playing a central role. He explains that the euro’s weakness against the dollar should theoretically bolster exports, yet soaring costs erode margins and undermine competitiveness in international markets. Companies operating on slim margins face amplified pressure, which translates into weaker price positioning abroad. In his view, the cost structure and pricing power in global distribution chains have become decisive for Alicante exporters.
Taltavull also highlights Alicante’s heavy reliance on traditional export products. He emphasizes that these goods tend to be highly sensitive to price shifts and to disruptions in international distribution networks. Any irregularity in those chains can magnify adverse effects on export volumes, making diversification and value-added strategies more important for staying resilient.
The economist points to a watchful period ahead, suggesting that what happened in June could offer a glimpse of what lies ahead in the current climate, including the ongoing war in Ukraine and its broader consequences for trade flows and energy costs. Observers will want to monitor how external tensions and domestic inflation interact with supply chains and exchange rates in the coming quarters.
Alicante exports have accelerated and are already 500 million more than last year in total.
Industry voices weigh in on the sectors most affected. Marian Cano, president of the Valencian Footwear Entrepreneurs Association (Avecal), notes that footwear exports have been a bright spot this year, signaling solid growth. Yet he cautions that persistent market uncertainty could dampen domestic demand and, by extension, overseas sales. He stresses that the June decline should be treated as an isolated development and that the trajectory in the months ahead will reveal whether a shift in trend is underway.
Pepe Serna, president of the Valencia Community Textile Entrepreneurs Association (Ateval), agrees that the situation requires patience. He points to inflation eroding competitiveness and notes that many textiles are not basic products, which makes them more vulnerable to price and cost pressures in international markets. Stakeholders continue to watch the cost environment and exchange-rate movements as key inputs to future results.
The overall picture for Alicante’s exports remains cautiously optimistic. While June’s setback raises questions, the broader half-year performance demonstrates resilience and a capacity to adapt to a shifting global landscape. Stakeholders across footwear, textiles, machinery, and related sectors are likely to respond with strategic adjustments, aiming to sustain growth and reduce exposure to volatility in the international arena. The coming quarters will be telling as policymakers, businesses, and industry groups navigate inflation, costs, and changing demand patterns in these important export channels. [citation: Ministry of Industry, Trade and Tourism data, 2024]