Andalucian economy expected to grow 2021 with employment also rising in the region

Andalucian economy is expected to experience growth in 2021 with employment also rising in the region.

The Gross Domestic Product (GDP) of the Andalucian economy could grow between 4.3 and 5.9% this year, while employment will increase between 0.9 and 1.6%, according to the forecasts of Economic Analysts of Andalucia published by the Unicaja Bank.

As stated in the report, in the specific case of the Andalucian community, the estimates of the Unicaja Banco Group’s research society point to a GDP growth in 2021 of between 4.3%, in the least favourable situation, and 5.9%, in the baseline scenario, while employment could grow between 0.9% and 1.6%, estimating an unemployment rate of between 22.8% and 23.5%.

For 2022, forecasts point to higher growth in activity and employment. In this sense, GDP could grow for the year as a whole by between 5%, in a worse/less favourable situation, and 6.2%, in the baseline scenario. An increase in employment is expected between 2.1% and 2.7%, with the unemployment rate between 22.0% and 22.6%, as reported by Unicaja Banco in a statement on Thursday, July, 15.

The contribution of the foreign sector was negative (-1.8 pp), with a greater decline in exports of goods and services (-19.0%) than in imports (-12.7%).

The number of employed people is expected to increase to 3.07 million during 2021, which would represent an annual increase of 1.6% (around 47,000 more employed ). The number of unemployed could rise by 4.6%, with the unemployment rate rising to 22.8% on average for the year (around 0.5 points more than in 2020). This rate could be higher in a more adverse scenario (23.5%), estimating, in this case, an increase in employment of 0.9%.
 

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