Andalusian Exports Fall 30% Due To The Coronavirus And May Be Even Worse
About Andalusian Exports Extend a collapse of up to 60% if the economic paralysis lasts two months or is hardened by the coronaviru Andalusia registered last January exports worth 2,685 million euros and ranked second in the ranking of the Spanish autonomous communities. And that already at that time the Covid-19 caused havoc in China and caused a decrease in sales of 5.2%.
Two months later, the coronavirus detected in the Chinese city of Wuhan is already a global pandemic and fully affects not only the Asian market, but the European market and, to a lesser extent, although growing, the American, in which Andalusia has most of its international clients.
The impact of the pandemic on the Andalusian economy – estimated by the Board in up to a 2.1% drop in GDP per month of stoppage – will be felt especially hard in exports.
To the point that, according to Extenda forecasts, the Andalusian Agency for Foreign Promotion of the Board, only the economic slowdown that has been registered in the month of March can mean a decrease in Andalusian exports of 30% over the last registered data, that of January. In other words, the value of sales abroad would go from 2,685 million to just over 1,879 million.
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But the fall forecasts can become a real collapse if there are two scenarios: that the economic slowdown lasts more than a month or that it becomes more pronounced and produces a real slowdown. In this case, says the CEO of Extenda, Arturo Bernal, the decrease in Andalusian sales in the rest of the world could reach 60% compared to the January data.
And that, says the CEO of Extenda, Andalusia is fortunate that its agri-food sector has a decisive weight in its sales abroad and this is because it is an essential activity, one of the few sectors in which it has not stopped in dry (or almost) activity.
You can get an idea of the strength of the Andalusian agri-food sector by going back, again, to the data for the month of January. Faced with the 5.2% drop in sales, exports of fruits, vegetables, vegetables and other related products experienced an increase of 2%, reaching 1,072 million euros. It was the second best historical figure and in all sales in the international market, two out of every five euros invoiced by Andalusian companies came from transactions related to the agri-food sector, especially fruits and vegetables.
That the pandemic has spread “from East to West”, as Arturo Bernal says, is that the main markets for Andalusia are in Europe and America. Extenda CEO highlights the 60% of Andalusian exports to the European market “and the virus is in Europe”, he says.
Although the agri-food sector is acting as if it were a life preserver as far as exports are concerned, Bernal warns that the hiatus in the rest of the productive activities may end up having an effect also on agricultural farms.
Above all, it shows whether the exceptional measures included in the alarm status decree are lengthened. Because then “the chain would start to stop.” And he gives an example: if the machinery of a farm suffers a breakdown and there are no spare parts, the effect will be immediate.
Bernal abounds in this aspect and details that some supply problems are already occurring with fertilizers or phytosanitary products, as well as with spare parts for irrigation systems.
However, the head of the Andalusian Agency for Foreign Promotion sees in this crisis also an “opportunity” in terms of exports, foreign trade. “It is time to prioritize quality over quantity and price and understand that the quality of Andalusia’s products is not elsewhere”, he highlights.
While that comes, from Extenda they are adapting to current circumstances and refocusing their promotional actions, so that everything that can be done online is being done virtually.