inflationary spiral is giving the lace to Spanish businesses at a time of economic recovery after suffering two years of restrictions due to the pandemic. The current price crisis is already having an impact on small and medium-sized companies, which account for 96% of the country's business fabric. The runaway increase in costs is having a notable effect on SMEs and, therefore, deteriorating their margins and putting their short-term survival at risk. Specifically, more than half of these companies admit that their margins are being reduced by inflationary pressure, a situation that puts the viability of 15% of Spanish SMEs at risk and forces another 16% to seek additional financing to face rising costs.
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