Prices have shot up in Spain following the Russian invasion of Ukraine and the province's economy is already affected

The problem is that in a globalised economy different countries supply elements to the supply chain. Already, because they can’t obtain parts from Ukraine, car manufacturers have started to cancel shifts and announce new lay-offs. These situations have a domino effect, which eventually reaches Malaga.

The motor industry isn’t the only one affected. Corn is essential for the agri-food sector, which represents more than 20 per cent of the province’s GDP. Production costs are rising because of the increase in the price of cereals, and companies are being hit by high energy costs, especially those with refrigeration chambers.

Then there are their fleets of lorries: fuel costs were already at a record high and have risen again since the conflict began, by more than 20 cents a litre for petrol and over 30 for diesel.

Sergio Cuberos, the president of the Malaga Chamber of Commerce, says the situation is truly alarming. “The increase in fuel and energy prices is going to cause an existential crisis for many businesses,” he says.

The president of the Mahos hospitality association in Malaga, Javier Frutos, says hopes have been dashed of 2022 being the year of recovery. “Prices had already started going up and that was a problem, but now there is starting to be a shortage of basic products like sunflower oil, which is used for frying. The price of electricity breaks records every day, and things are difficult,” he says.

These examples show the impact of war on the economy. Ukraine, exporter of important raw materials, became a battlefield overnight and because of the sanctions, Russia has been almost completely eliminated as a commercial partner.

The president of Dcoop, Antonio Luque, says prices will continue to rise even if the war ends soon, and that countries need to go back to being self-sufficient. “If we can’t even make a profit even when we sell at high prices because production costs have risen so much… well, then we have a problem,” he says.