Giró highlights the strength of the Catalan economy but warns of new uncertainties

The Catalan economy It’s going well but difficult times are coming. The ‘conseller’ of Economy and Finance of the Government, James Girohas highlighted this Monday the resilience of the Catalan companies and economy but has warned of the accumulation of uncertainties that loom for the future in what he has described as a “phase change” marked by inaccurate forecasts. For Giró, the indicators have “shown that the foundations of the Catalan economy are solid”, despite the fact that the sources of State financing “condition growth” (referring to the chronic deficit of public investment in Catalonia).

Giró, which closed the presentation ceremony of the ‘Annual report on the Catalan economy 2021’, acknowledged that the most important challenge in the new international situation is inflation and has aligned itself with the European Central Bank’s strategy of establishing stable prices as a priority: “The ECB cannot allow inflation above 2%, although that will inevitably lead to a slowdown in economic activity. Therefore, Giró predicted that “some European countries will enter a recession” in that fight to curb inflation. “The only recipe to deal with a scenario like the one we have before us is to strengthen our foundations, and this must begin to be seen in the preparation of the Budgets of the Generalitat for the year 2023” , has assured.

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For the Minister, the second economic phenomenon that characterizes this new context is the consolidation of vertical industrial models resulting from a situation in which the processes of relocation give way to the relocation of the industry. “Industrial models based on minimum stocks are showing signs of exhaustion and are giving way to new production models. Creating a European microchip industry in Catalonia goes along these lines”, added Giró. Within the framework of this new international economic context, Giró also added the growing geopolitical instability that increases the risk of greater protectionism on the part of the states “which has not been seen since the fall of the Berlin wall.” Due to all this accumulation of changes, the international economy, and the Catalan economy in particular, is entering a period of “rough waters” that can only be tackled, in his opinion, by reinforcing the fundamentals and foundations of the economy, such as the commitment for research and development, backing companies that create employment, reinforcing territorial balance and providing special support mechanisms for business activity.

The report on the Catalan economy in 2021 especially highlights the fundamental role of tourism and the internationalization of the economy in the rapid recovery after the pandemic and the outbreak of the war in Ukraine. The arrival of foreign tourists in April has already reached 70% of those reached in the same month of 2019. The number of companies with an export volume of more than 50,000 euros per year grew by 10.7%, with an increase of 6 .5% in the last five years. The recovery of exports has benefited in part from the rise in prices. Exports and imports of goods grew strongly (21.5% and 19.5%, respectively) in 2021.

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