Between January and September of this year, passenger cars manufactured in the Valencian Community worth €3,301,394 million were sold, 1% less than in the same period of the same year. The percentage of ceramic tiles, the second most notable exported production in economic volume, also fell: up to 22.2% less, with a total of 2,650,659 million euros.
And, according to the Valencia Chamber in its export report, Valencian industrial activity is the most affected by the general slowdown of the economy. Although the sale of passenger cars only falls by 1%, that of automobile components is at -15%.
It is due to the “high export orientation of some industrial branches”, such as ceramics, a sector that continues to suffer a complex situation due to the “difficult” situation it is going through as it is one of the most intensive sectors in energy consumption. BBVA already warned in its latest report that industrial activity could have already hit bottom.
In the study published today, Cámara Valencia points out that Valencian foreign trade, “like Spanish trade, has been experiencing a noticeable decline since the second quarter of 2023, both in nominal and real terms, after two years of growth” and points out that This is due, to a large extent, to the stagnation of demand in European markets, the uncertainty and instability in markets outside the European Union and the loss of competitiveness of Valencian products as a consequence of the significant price increase produced in 2022. .
Even so, it explains how regular Valencian exporting companies have continued to increase in 2023 (0.8% until September), a situation that “reveals the relevance of companies that invest in their export and internationalization strategies, ensuring that regularity “Their presence in foreign markets gives them a capacity for resilience and adaptation to the different phases of the international economic cycle and new global challenges.”
This study also shows that the logistics sector also suffers from lower export activity and notes that maritime transport has fallen by 6.8% until September. Likewise, the better performance of domestic demand and the difficulties that Valencian companies are encountering in carrying out sales in foreign markets, especially non-European ones, have a negative impact on the potential investment of companies in export strategies.
Finally, the report explains how, looking to 2024, the forecasts point to a recovery in exports, especially during the second half of the year, in line with the recovery of growth in the main international economies and the moderation of inflation rates. inflation. Likewise, they consider that transportation costs (fuel and freight) will not have a negative impact, as they predict that they will be positioned at levels similar to those of 2019.
And it aims at new markets: in addition to the European market, which will continue to be a reference for Valencian companies, companies will open up to North America, Turkey, India and some Southeast Asian countries, among others. “The most important challenges for the Valencian exporter focus on expanding their markets in a scenario of uncertainty generated by the different international geopolitical conflicts and the tendency to increase non-tariff measures that different markets have been applying worldwide,” concludes the assessment of Valencia Chamber.
