In the first half of 2006 production grew in most branches of industry, sustained by the rapid expansion of demand. Corporate profitability benefited as a result, but investment remained subdued. Exports continued to expand, thanks in part to the trend in the prices of energy products. The expansionary cycle in construction appears to be leveling off, owing mainly to the slowdown in public works.
Freight traffic through the region’s ports rose, especially container traffic, but the rate of increase again fell short of that recorded by the main competing ports abroad. The distribution sector continues to suffer from the weakness of demand for consumer goods. Tourist flows increased for the first time in several years. Employment grew, partly as a consequence of the regularization of the positions of immigrants from abroad, while the unemployment rate fell. Bank lending accelerated, with a pick-up in loans to both consumer households and firms. The growth in banks’ fund raising was modest, as was that in securities deposited with banks.
