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Malaga's growth forecast improves with 3.3% rise predicted this year

  • The province is still at the head of Andalucía in terms of GDP increase thanks to the rise in the real estate sector and domestic and external demand

The economy of Malaga province looks set to grow more than initially expected this year. In just three months from June to September, the financial analysis organisation Analistas Económicas Andaluzas (AEA) has increased its growth forecast for the province's GDP from 3.1% to 3.3%. Malaga remains at the head of Andalucía in terms of economic growth, along with Granada.

The average increase in production in the region of Andalucía as a whole is expected to be 3%, in line with the national average.

Employment in the region is expected to grow by 3.4%, half a percentage point more than the forecast announced in June.

Increasing demand (both domestic and external) and the revival of the real estate sector are behind their renewed optimism of the analysts.

“It's not a question of the motor warming up, it's already hot,” said the CEO of AEA, Francisco García Navas, this week.

Especially noteworthy among the positive figures for Malaga is the 18% growth in exports up to the month of July, an unexpectedly “strong rate” that is one of the main reasons for the upward adjustment of the forecast, explained the AEA's report coordinator, Felisa Becerra. Another demand-related indicator, the registration of new vehicles, also shows a significant increase: 8.4% in cars and 15.4% in goods vehicles.

Property sales in the province reached a total of 17,757 in the first half of this year, more than a third of the total for Andalucía as a whole and a year-on-year increase of 12.4%. Mortgages were also up 10% both in terms of quantity and amounts borrowed.

As far as employment is concerned, “the Malaga labour market is showing a year-on-year increase of 3.2%, which amounts to 18,400 more people in work than a year ago,” says the report, reflecting the EPA (active population survey) figures for the second quarter of this year.