Four in five companies believe inflation threatens their business

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A KPMG report shows that, despite the uncertainty, 46% of Spanish companies will increase their workforces this year, especially in the technology and health sectors

The economic recovery brought about by the end of the pandemic and the containment measures has been partly overshadowed by the conflict in Ukraine, although Spanish companies’ business forecasts have not been greatly affected and have remained stable. This is evident from the new report ‘Perspectivas España 2022′, conducted by KPMG and the employers’ organization CEOE, in which 77% of respondents confirm that they will increase their turnover this year and almost half, 48%, plan to do so. 5%.

And the higher the turnover, the higher the labor force participation. 46% of executives surveyed say they will expand their workforce this year, compared to 29% who expect it in 2021, especially in the technology and health sectors.

CEOE president Antonio Garamendi assures business executives are “highly aware” that we are in a “complicated” moment, when additional measures are needed to consolidate the ongoing recovery and address the threat it poses. to offer. According to him, we must continue to take steps to transform our economy and make it “more efficient and productive, digital and sustainable”. This requires a business development framework that provides “certainty and a stable regulatory environment, reforms to correct structural weaknesses, as well as a reduction in taxes and tax incentives”.

In fact, inflation is the main future threat to the economy, business executives say. The survey shows that 80% believe that the increase in production costs and the decrease in household purchasing power – two due to the rise in inflation – are the main risks to their business.

There are significant changes in the twelve-month outlook: where at the end of 2021 43% of entrepreneurs expected the Spanish economy to be better or much better this year, it is now only 21%. In addition, those who expect things to get worse or much worse grow by 26 points (from 19% to 45%), which is the majority opinion among the businessmen who participated in the survey.

The Autonomous Communities that present a more optimistic view of the evolution of the economy are the Balearic Islands and the Canary Islands, an unequivocal sign that we are witnessing the recovery of tourist activity, which is essential for the economic structure of our country and, of course to both archipelagos.

Source: La Verdad

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