SANTA CRUZ DE TENERIFE, Feb. 20 (EUROPA PRESS) –
In the fourth quarter of last year, the Canary Islands witnessed a 5.7% increase in industrial production, as indicated by the variation in the quarterly average compared to the same period in 2022 of the Industrial Production Index (IPI), prepared by the INE, and disclosed this Tuesday by the Chamber of Commerce of Santa Cruz de Tenerife. This highlights the positive trend compared to the downturn in production nationwide, showing a 0.6% decrease.
The archipelago also recorded an average production increase of 5.6% in 2023, in contrast to the negative data recorded in the rest of the national territory, which experienced a -0.8% decline.
Santiago Sesé, president of the Chamber of Commerce of Santa Cruz de Tenerife, sees these statistics as indicative of “the strong condition” of the industrial sector in the islands in recent years.
“This final quarter of 2023 confirms the positive momentum in this sector, which is increasingly flourishing and making a greater impact on our economy. That’s why we, at the Chamber of Commerce, believe it is crucial to continue supporting policies for a sector that is set to further contribute to our GDP in the coming years,” he added in a statement.
This quarterly upturn is primarily attributed to the increase in energy production (10.2%), followed by intermediate goods (9.3%) and non-durable consumer goods (3.1%).
Conversely, capital goods exhibited a negative variation rate of -7.2% and consumer durables at -1.7%.
Regarding the influence of this sector’s development on the labour market, the quarterly average of Social Security increased by 2.8% compared to the same period the previous year, with a total of 40,294 workers by the end of December, marking a rise of 1,140 from 2022 (2.9%), while the average number of unemployed individuals fell by 10.2% compared to the fourth quarter of 2022, reducing the figure to 6,394 unemployed in September, 675 less than the previous year (-9.5%).
In terms of the number of companies registered at the end of the year according to Istac, there was a minor decrease.
In December, the Canary Islands had a total of 2,847 companies registered in industrial activities, signifying an annual decrease of 16 companies compared to December 2022.
However, the chamber president emphasises that these figures lean more towards stability in the sector.
“We cannot declare the trend in terms of business creation as negative, despite these declines. The Canary Islands’ industry is currently experiencing a good phase, and it’s normal that, due to market adjustments, some companies end up not being sustained,” Sesé remarked.
THE IMPACT ON BUSINESS CREATION IS MOST PRONOUNCED IN THE MANUFACTURING INDUSTRY
The most affected subsectors are manufacturing industries (-6), extractive industries (-4), electricity, gas, steam and air conditioning supply activities (-3), and water supply, sanitation, waste management, and decontamination, which decreased (-3).
The confidence of industrial companies, on the other hand, increased by 2.6% in the January survey, marking the most significant sectoral advancement, with 28% of companies reporting improved results compared to 16% claiming reduced results.
The remaining 56% maintained stable activity compared to the third quarter of the year.
Based on these data, expectations point to moderation in activity, with an increase in stable responses (64%) and a balanced outlook of zero points.
“Stability is the predominant theme, as we also observed during the presentation of the Confidence Bulletin report. However, there are external factors, primarily linked to international conflicts, that will be instrumental in charting the trend and prosperity of the sector,” pointed out Sesé.
The Industrial Price Index (IPRI) experienced a decrease in the last part of the year, registering interannual variation rates of the quarterly average of -13.1%.
The national average also declined, albeit by a lesser margin, standing at -7.2%. This downward trend was prompted by the decrease in prices of leading sectors such as energy (-27%).
