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West Africa and Southeast Asia: where Valencian exports play the post-Covid future

The recovery of the Valencian economy in 2021 will be based, once again, on exports. The export sector was key to getting back on track after the 2008 financial crisis and, again, it will depend on him whether the economy recovers after the bump that the coronavirus crisis has meant. Now, after the pandemic, some are the changes that are looming.

It is one of the conclusions of the report prepared by Camara Valencia and CaixaBank on the recovery of foreign markets after Covid-19. The study shows that, in the short and medium term, Europe will continue to be the engine of Valencian exports, although it will be necessary to look in the long term to new upward markets such as West Africa and Southeast Asia ethical. And, of course, to assume that Latin America and the United Kingdom will present problems.

After the expansion of globalization and the growth of international trade in the first years of the 21st century, the 2008 financial crisis slowed down both processes, in a scenario with the conflict between the United States and China in the background. Even so, Between 2010 and 2015, exports from the Valencian Community grew at an annual rate of 8.9% on average. Between 2016 and 2019, however, at 2.5%. Undoubtedly, Valencian sales abroad were adversely affected by the fall in automobile exports in that period (4.17% less).

In any case, “the market diversification Within the set of regular Valencian exporting companies it has been one of the main characteristics in the last decade, especially towards Asia and Africa, although with export volumes much lower than the European market average “, he noted. wing the report.

And after the pandemic, what Valencian exports have sunk 13% in the first seven months of 2020 Compared to the same period of 2019, “Western Europe will become the most dynamic market for the main Valencian products -both for consumer and intermediate goods-, which will imply an accentuation of the concentration of Valencian exports in European markets “.

But West Africa (Ivory Coast, Ghana, Senegal) it is consolidated as one of the areas with the greatest opportunities for Valencian exports, as it is “a wide market in growth and development with high potential”. In fact, “Valencian exports will experience a process of market diversification as of 2023, driven by regular export companies – more restless and with strength in the search for new markets – and by the consolidation of economic recovery” .

In addition to West Africa, he Southeast Asia it is the other region with the greatest long-term growth potential. Even North America, according to the report.

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