The Gipuzkoa business association points to the supply and cost of raw materials and energy as the main concern of the businesses in the area. It is estimated that the economy of Gipuzkoa will grow the GDP of Gipuzkoa by 4% in 2022.
Euskaraz irakurri: Gipuzkoako enpresek you dute merkatuaren egoerak okerrera egingo duela, gave Adegik
The Gipuzkoa . Business Association adegi provides that the area’s GDP will grow by about 4% in this 2022, “in the low range” of the forecasts it had made at the beginning of the year. In the report presented this Wednesday, Adegi points out that the main concerns of the companies in Gipuzkoa are the supply and costs of raw materials and energy, the high labor costs and wage increases and the decline in the profitability of sales. It is further estimated that the market situation will deteriorate significantly in the coming months.
In fact, Adegi points out that the current situation is already less favorable than companies had expected in April. Business billing growth is losing momentum, with orders falling 4%, while 15% of businesses plan to increase their workforce, while 17.5% are cutting back.
Sales profitability falls for 52% of companies, Adegi emphasizes, and only rises for 3%. All this, while delivery costs continue to rise for 71.5% of companies in Gipuzkoa. For example, it is estimated that job creation could slow down or even decline, especially in manufacturing, retail and hospitality. Of course, an average of about 5,000 net paid jobs could be created in 2022, compared to 2021.
The report explains that the deterioration in business confidence is accelerating, although 80% of companies still believe that the market situation is normal or has been reactivated. 30% of companies believe the market situation is one of reactivation, the lowest level since January 2021 (then 26%). They are 25 points less than last year.
pessimistic predictions
Looking ahead to the coming months, yes, companies are considerably more pessimistic. The number of people who foresee a recession rises to 32%, while the number of people anticipating reactivation fell to 17.5%. Keep in mind that the situation in September is less favorable than what companies had expected in April.
At the same time, revenue growth is losing momentum, although, explains Adegi, average corporate revenue has increased by 0.8% over the past three months compared to the previous quarter (0.5% on the single market and 1.9% on the foreign market). The increase is mainly due to the services sector, 2.9%, followed by construction, 1.1%, while manufacturing virtually stagnated with a minimal increase of 0.2%. The level of orders decreased by 4% compared to the previous quarter due to the negative evolution in the industrial sector.
At 84%, the production capacity utilization rate is slightly below the April level, but above last year’s record.
In addition, the supply and costs of raw materials and energy remain the main concern, followed by high wage costs and wage increases and the decline in the profitability of sales. Concern for the international economy and that of the Spanish state rises to fourth and fifth place.
Delivery costs continued to rise for 71.5% of companies, 13 points less than in April. On average there is an increase of about 9.5%.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
