The province of Alicante exports 375 million euros more to the United Kingdom with the Brexit than a year before

Brits have also increased their overnight stays and their purchases of housing to the Costa Blanca

 

Tourists in one of the viewpoints of the coast of Benidorm
Tourists in one of the viewpoints of the coast of Benidorm – JUAN CARLOS SOLER

ABC – ABC_alicante Alicante27 / 06/2017 08: 15h – Updated: 06/27/2017 08: 31h. Saved in: Spain Comunidad Valenciana

The province of Alicante has increased by 375 million euros its exports to the United Kingdom, throughout 2016, to 2,717 million euros, 16 percent more than a year earlier, according to a study by the Institute of Economic Studies of Alicante (INECA). The business lobby has developed the study following the celebration on Friday 23 of the first anniversary of the victory of Brexit.

With these data, INECA has explained that activity with the United Kingdom represented 8% of its GDP last year for the province; A percentage point more than the previous year.

However, it has pointed out that in spite of this increase, the United Kingdom loses global weight for the economy of Alicante because the companies are expanding their commercial relations with other countries and this means that these third countries have increased their participation in the GDP, in In the same year, by 5% (from 29 to 34%).

The president of INECA, Perfecto Palacio, has insisted that there has been «an increase of activity with other countries» and that the British market «loses weight» in the total calculation.

Francisco Llopis, director of studies and author of the report, affirmed that «the consequences of Brexit are not yet appreciated» because no decision has been taken at a political level, but after updating the results of the report, «a day Today we can ensure that the result of British economic activity on the province in 2016 is overall positive. «

«Twelve months later, at INECA we have seen a change of trend but it depends on the sector of the activity. In foreign trade, and with the provisional data still 2016, we have seen a slight loss of weight with the United Kingdom on the global of exports, «they have said.

«As we said at the time, the United Kingdom remains the fourth largest trading country in the province. The direct impact on foreign trade in Alicante was around 5.61% (definitive data). A year later, the incidence has decreased slightly and is about 5.56% and activity has been around 430 million euros, 50 million less than a year before. Footwear has been the most affected with 12.6 million euros less, «they have explained.

tourism

For all this, tourism is the sector that «could most be affected». Around 2.5-3% of tourists arriving in Spain are British who go to Alicante and the Region of Valencia.

«They are not travelers who carry out a high expenditure daily, but they are the ones that more number of overnight stays contemplate. Hotels would be affected but their incidence would be more visible in those populations with greater presence of British residents, since most are housed in their own homes. Expenditure for 2016 amounted to 1,823 million euros, 323 million euros more than the previous year. The rest of nationalities has gained weight in the general calculation so that the British position falls, despite increasing the final amount spent, «have pointed out.

As regards the real estate sector, home sales to the United Kingdom have lost weight on total sales to foreigners, although the total volume of transmissions to Britons has increased. «At the end of the year, 3,200 homes were sold (about 200 more than a year earlier) to British citizens, which cost € 464 million, almost 90 million more than in 2015»; Which according to Llopis, «this activity may be one of the most affected, along with tourism.»

The evolution of the pound price, the increase in inflation in the UK, the loss of purchasing power of the British and the degree of permissiveness of free movement of British citizens could affect «especially» the final impact on the province, Depending on how the exit of the European Union materializes.