A report indicates that the economic recovery will reach the Region of Murcia a year before the rest of Spain

Economic activity in the Region of Murcia will exceed pre-pandemic levels a year earlier than in the rest of Spain. This is indicated by the second report of the Financial Observatory of the Region of Murcia, which indicates that the Community already reaches the levels of prosperity prior to Covid-19 in 2022, while the recovery of the country as a whole will have to wait for the end of 2023.

However, the report warns of “the high economic uncertainty marked by the overlapping of the recovery in economic activity after the health crisis with the strong inflationary pressures, the tensions in the supply chains and the Russian invasion in Ukraine, which would affect less to the activity of the Region than to others due to the lower direct dependence on the Russian and Ukrainian markets».

The Minister of Economy, Finance and Digital Administration, Luis Alberto Marín, presented this Tuesday this second report of the Financial Observatory accompanied by the Professor of Financial Economics at the University of Murcia (UMU) and coordinator of the study, Samuel Baixauli, and highlighted that «in At times like this, it is essential to have consistent, reliable and comparable information over time».

This initiative of the Institute of Credit and Finance of the Region of Murcia and the Chair of Competitiveness, led by the Association of Economists of the Region of Murcia and with the participation of the University of Murcia (UMU) and the Polytechnic University of Cartagena (UPCT), seeks to offer society a periodic and truthful tool that helps companies and citizens to better understand the economic context, risks and opportunities and, ultimately, improve responsible decision-making.

Among the data collected in the report are that the regional industrial sector shows its potential by leading the growth of industrial production by autonomous communities in January-February of this year, with 15.5%, the highest value in Spain; and last year the number of companies prior to the pandemic was recovered to reach 42,618, being the second autonomous community in company creation.

The recovery of employment last year also stands out, with a drop in unemployment of 23.8%, 28,922 people in absolute terms, and which represents a drop of 3.5 points more than the Spanish average; or that the record of employed people was reached with 641,500 in total, that is, 34,600 more people than 2020.

On alert

«The Region of Murcia has recovered strongly in 2021, reaching levels of economic activity, business creation, self-employment and employment prior to the start of the pandemic. However, both companies and public administrations and civil society must be alert so that the solidity of this recovery is not put at risk in the face of the economic and humanitarian crisis that we are facing due to Russia’s invasion of Ukraine,” he pointed out. Marin.

In fact, the introduction to the report states that the economic recovery scenario at the end of 2021 is at risk due to the rise in the price of raw materials, difficulties in international trade and tensions in global supply chains. Likewise, it foresees that the financial effects of the war in Ukraine will be felt more and more, in the form of defaults due to the recession in the Russian economy and breaches of supply agreements, its magnitude being difficult to predict. The Observatory report can be downloaded from the website of the Regional Financial Education Plan for the Region of Murcia: http://educaenfinanzas.icrefrm.es.