The barometer of the health of regional businesses drawn up twice a year by the Regional Directorate of the Banque de France gives a precise overview of the economic situation of the Pyrénées-Orientales. Corporate insolvencies are on the rise again. “But this development is quite logical. We had fallen very low between 2019 and 2021. We can consider that this is just a catch-up effect. And we are a long way from the levels observed in 1990 or 2010”, tempers Aurore Mankiewicz who signs this regional study.
The major economic difficulties affect the departmental construction industry. “Undoubtedly, the sector is suffering from a scissor effect between the rise in raw materials and orders which do not arrive or which are slow in coming, in particular public orders. We are also seeing a significant drop in construction loans for single-family homes,” continues Aurore Mankiewicz. In addition to this lack of short-term visibility, the construction industry faces an acute recruitment problem. 60% of companies in the Pyrénées-Orientales say they are faced with this situation compared to only 50% elsewhere in Occitania.
Recovery expected in 2024
Aurélie Mankiewicz has however detected glimmers of hope. Raw material supply difficulties are easing. Inflation is still high but seems to be leveling off. According to the survey carried out by the CCI of Pyrénées-Orientales, sectors are running well. These are services, accommodation, tourism, IT and personal services.
On the other hand, the results recorded for export are qualified as average. International markets are becoming difficult for French companies and therefore also for Catalan companies. Exporting companies are now forced to pass on the increase in raw materials to finished products, which represents a price increase of between 7 and 10%. What harm competitiveness for markets like that of the United States.
Still according to the Banque de France, the recovery, the real one, is hoped for 2024. After the resilience in 2022 and the slowdown in 2023.