The president of the Business Confederation of Lanzarote (CEL), Beatriz Salazar, assured this Thursday that “it is necessary to give a sustained response over time, that is adapted to the evolution of the markets given the possibility that the conflict prolongs.”
While the highest representative of the island's business owners acknowledges that the measures of the Government of the Canary Islands and the central Executive to contain the economic impact of the Middle East war on the Archipelago "are adequate", she considers that these must be continuously evaluated to guarantee their adequacy to the real context of the Canarian economy.
“Our condition as outermost region makes us especially vulnerable to any alteration in international markets, which is why it is fundamental to anticipate what may happen in the medium term,” warns Beatriz Salazar.
Furthermore, warns that the war conflict in the Middle East is beginning to transfer its effects to the Canarian economy, increasing pressure on families and productive sectors of the islands.
The main impact is the increase in the cost of energy, which directly affects business costs and reduces household purchasing power. “In a territory like the Canary Islands, highly dependent on external sources, this situation has a direct and amplified effect on the entire economic activity,” he states.
The increase in the price of oil, with a 31% increase in the Brent barrel since the start of hostilities, is making transport, production and, ultimately, the shopping basket more expensive, according to the employers' association.
In the case of air transport, the increase in fuel coincides with a period of high tourist demand, which increases pressure on companies' profitability and puts the connectivity of the Canary Islands at risk. Furthermore, this context occurs at a time of special operational sensitivity in Canarian airports, with active labor conflicts affecting strategic infrastructures such as that of Lanzarote.
“Another example is that a large part of the world's production of fertilizers has already been paralyzed, which introduces new tensions in the primary sector and anticipates a possible increase in food prices”, explains the president of the Confederation, emphasizing the negative influence of international armed conflicts on all productive sectors.
Furthermore, Beatriz Salazar points out that these factors will begin to be reflected in the next inflation data, with an increase in the March CPI of several tenths, which will mean a new loss of purchasing power for Canarian families.
The energy price increase is directly affecting the competitiveness of the business fabric. Sectors such as transport, the primary sector, or industry see their costs increased in a context of growing uncertainty.
