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The slowdown in consumption, industry & services slows the Valencian economy

Written by on December 7, 2018

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Article Written & Published By: Las Provincias
Translated from Spanish to English

The slowdown in consumption, industry and services slows the Valencian economy

Experts from Bankia Estudios detect signs of weakening in the Comunitat compared to the good tone of employment and exports

The Valencian economy brought the rebound of activity in Spain after the harsh adjustment suffered in the years of crisis , mainly due to its specialization in tourism and the good progress of industry and exports.

The Comunitat closed 2017 with a rate of advance higher than the national average in 2017, of 3.2% compared to 3% state , but this year “there are some signs of slowdown” in that growth, according to the latest report of Bankia Studies .

The authors of the report indicate that, although “there is a solid growth” in the Valencian economy, this year there is a “loss of vigor of consumption, industry and services” that “contrasts the good tone of employment and the exports”.

With 9.3% of GDP , 10.6% of employment and 10.7% of companies in the country, Valencia is the fourth Spanish economy.

However, it falls to the eleventh place in terms of per capita income, with 22,055 euros at the end of 2017 , a figure that barely reaches 88% of the national average (24,999 euros) and is 35% lower than that of Madrid, the region with the highest GDP per capita (33,809 euros).

The Comunitat presents a greater productive specialization in manufacturing, tourism / hospitality, construction and real estate activities that, together with the export dynamism of chemical products, automobiles and fruits and vegetables since 2008, placed it among the engines of recovery.

So far this year, however, the indicators of industry and services “show a progressive loss of dynamism,” according to Bankia Estudios.

At the end of September, industrial production rose a shy 0.2% in the Comunitat Valenciana compared to 1.4% of the national average , at the same pace as in Madrid, with whom it shares the last step prior to the area of ​​red numbers in which they are Castilla-La Mancha, Andalusia, Baleares and La Rioja.

In services it was also located in the lower part of the autonomic table, with a rise in turnover of 4.3%, identical to that of Murcia and only higher than that of Andalusia, while the average climbed to 6.6% for the Pull of Madrid or Cantabria.

Consumption, for its part, registered “a marked weakening in recent months”. After three months of falls, retail sales fell by 0.5% in the Comunitat until September .

During this period, car registrations also grew less than the national average, while overnight stays remain positive.

As for the Valencian real estate market, Bankia Estudios highlights its dynamism and links it with the economic upturn, the importance of tourism and the attractiveness of the Valencian Community for investment in housing.

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