Tourists at Malaga airport. / Ñito Salas

Andalucía, one of five Spanish regions with above-average economic growth

By the end of 2023 the region will have returned to pre-pandemic GDP levels, according to the latest report from BBVA Research

Héctor Barbotta
HÉCTOR BARBOTTA Seville

Andalucía is one of five regions of Spain which will see above-average economic growth next year, according to the most recent report from BBVA Research, which warns that the Spanish economy as a whole will decelerate more than predicted in 2023.

The study says GDP in Andalucía will increase by two per cent next year, behind only the Balearics (3.5%) Canary Islands (3.5%), Madrid (2.6%) and Extremadura (2.4%).

The report expects Valencia, Catalonia and Castilla-La Mancha to grow in line with the national average, which is estimated at 1.8%, while there will be below-average growth in Murcia and La Rioja (1.6%); Aragón (1.2%); Cantabria, Castilla y León and the Basque Country (1.1%); Asturias, Galicia and Navarra (0.8%).

Although the forecasts for the rise in GDP are more modest than in previous studies, they do not contain any indication of negative growth.

If the forecasts prove accurate, by the end of 2023 GDP in Extremadura, Castilla-La Mancha, Murcia, Andalucía, Valencia and Madrid will be back at 2019 levels, before the Covid-19 crisis.

The report shows that GDP in Spain will grow by 4.1% this year (which it also predicted three months ago), but it has revised levels of private consumption downwards and revised those of investment and exports of goods and tourism services upwards. Nevertheless, it also says growth in 2023 will be lower than that of this year because of a slow-down in demand from Europe.