SHARE
COPY LINK

POLITICS

Pizza delivery falls victim to Spain’s political instability

Spain has been without an elected government for nine months now and the political uncertainty is taking its toll. Even impacting the nation’s hunger for takeaway pizza.

Pizza delivery falls victim to Spain's political instability
Spaniards' appetite for pizza is on the wane. Photo: pixel_d0ts / Pixlr

Spain’s largest delivery pizza firm Telepizza blamed a lack of growth in company accounts on “political uncertainty and loss of consumer confidence”.

Pablo Juantegui, the CEO of the Telepizza group told reporters at a meeting on Wednesday that “the state of political uncertainty has slowed consumption and that can be seen in a decrease in average spending per customer purchase.”

“Until May we had customers who bought more often and in bigger quantities,” he explained.

Telepizza has seen its share price plummet since being first publically listed on Spain's stock market in April, dropping from €7.75 to €4.23.

But despite the losses Telepizza announced expansion plans for Spain with the opening of 200 new stores, according to a report in Spain’s financial newspaper Expansión.

Spain's has suffered political paralysis since December 20th when the election failed to give any party an absolute parliamentary majority, as upstart groupings Ciudadanos and Podemos shook up Spain's long-established two-party system.

A repeat election in June failed to break the deadlock and Spain look set to suffer another general election at Christmas if political parties continue to fail to reach pacts to form a government.

Despite the fact that Spain is being managed by a caretaker government the economy is expected to continue to grow, with a forecast growth of 2.9 percent for 2016.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

ECONOMY

Spain posts strong growth for 2022 despite inflation

Spain's economy grew faster than expected in 2022 as strong domestic consumption and a surge in investement offset worries over high inflation, officials figures showed Friday.

Spain posts strong growth for 2022 despite inflation

Despite soaring energy and food prices fuelled by the war in Ukraine, the economy grew by 5.5 percent, similar to the previous year and well above the government’s target of 4.4 percent, according to an initial estimate by the National Statistics Institute (INE).

“Despite the prophets of doom, we have strong economic growth, the lowest inflation in Europe and record employment,” tweeted Prime Minister Pedro Sánchez, saying the figures showed “the strength and resilience of the Spanish economy”.

The INE said the growth figures reflected a strong performance in spring when gross domestic product rose by 2.2 percent between April and June thanks to steady household consumption.

That boost offset a sharp slowing of activity towards the end of the year – when GDP grew by just 0.2 percent in the third and fourth quarters – in a context of high consumer prices that affected economies across Europe.

In Spain, inflation reached an average of 8.4 percent last year, peaking at 10.8 percent in July, INE figures showed.

But it has slowed in recent months, falling to 5.7 percent at the end of December, one of the lowest figures in the Eurozone.

Spain “has demonstrated a notable resilience” in a “very difficult” context, Economy Minister Nadia Calvino said earlier this week, noting its growth levels were well above the European average, estimated by Brussels to be 3.3 percent.

“We are starting 2023 on a good footing.”

The government believes the dynamic will enable Spain to maintain solid growth this year although its target of 2.1 percent is far lower than the figure for 2022.

Even so, the prediction is far more optimistic than that of institutions like the IMF which sees the economy growing by 1.1 percent.

Among Western economies, Spain was one of the worst hit by the economic fallout of the pandemic, with its GDP collapsing by 10.8 percent in 2020, largely due to its heavy dependence on tourism.

The IMF believes Spanish growth will only reach pre-pandemic levels in 2024.

SHOW COMMENTS