Massive setback as 37,000 companies face closure in the year 2011
The Spanish economic crisis is forecasted to take a significant toll on small and medium-sized businesses (SMEs) in the country. According to the Spanish Commerce Confederation (CEC) and the Spanish statistics office, INE (Instituto Nacional de Estadística), the crisis is expected to result in the closure of 5% to 6% of SMEs, amounting to approximately 37,000 businesses.
These businesses play a crucial role in the Spanish economy, contributing significantly to self-employment and Gross Domestic Product (GDP). They centralise 25% of the country's self-employed and generate 14% of Spain's GDP. The population of SMEs in Spain is 617,548 stores, representing over 1.8 million jobs.
Despite the grim predictions, the Christmas campaign is expected to see an increase in sales for the first time since 2008. The expected increase in sales could range between 5% and 7%. The average spending per person during Christmas shopping is between 70 euros and 80 euros, and this spending represents close to 60% of the total average budget for Christmas shopping.
However, the increase in sales is not expected to prevent the closure of 37,000 SMEs. The closures are attributed to a slowdown in consumption caused by the economic crisis. Manuel García-Izquierdo, head of the employers' association, expressed his concerns about the situation, but remains hopeful for the future of SMEs in Spain.
The employers' association, based in Spain, did not specify any specific industry or type of business that is most affected by the economic crisis. Despite the challenges, SMEs continue to be a vital part of the Spanish economy, and efforts are being made to support them during these difficult times.
Read also:
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Skechers Debuts First American Stores Focused on Athletic Footwear Performance
- Racing ahead in Renewable Energy Dominance: Changzhou, Jiangsu Pushes for Worldwide Renewable Energy Ascendancy
- Funds Amounting to Over Two Hundred Million Rupees Collected on Impact Guru to Aid Punjab's Flood Victims in Reconstructing Their Homes
