New companies in Malaga multiply despite COVID

Bollofino, CC BY-SA 2.0 , via Wikimedia Commons

The number of new companies being created in Malaga is multiplying, despite the COVID pandemic and its strong economic impact.
The economy is recovering and Malaga has positioned itself well to attract investors. In 2021, despite the ongoing effects of the pandemic, it recorded its highest number of company start-ups in the last 14 years. It is currently the third-largest centre in the country after only Madrid and Barcelona.
Last year, 5,816 companies were started in the province of Malaga, according to data from the National Statistics Institute. Evidently, the number is much higher than in 2020, when COVID was at its peak and the national GDP fell by 10 per cent. But most notable of all is that the last time so many new companies were created in one year was 2007, when there was an economic boom in Malaga driven mainly by construction.
In fact, between 2002 and 2007 more than 6,000 companies were created annually. The crisis of 2008 led investors to reduce their commitment, with only 3,573 firms created in 2010. Since then, despite ups and downs, the number had been steadily increasing until the arrival of the virus. In 2019, for example, 5,233 new companies were created.
Malaga is once again in the lead, where it has been for more than two decades, for the creation of new companies in Andalucia, with 33 per cent of the total. It is followed by Seville, with 4,435 companies in 2021, 25 per cent. In other words, Malaga and Seville together account for 58 per cent of new companies in the region.
On the other hand, not everything is a success story. Last year 1,056 companies were dissolved in Malaga, a third of the Andalucian total, behind only Madrid, where 7,373 companies were dissolved and slightly above the Balearic Islands (1,010). However, five times more companies are created than are destroyed in Malaga, so the trend is positive overall.
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Written by

Tamsin Brown

Originally from London, Tamsin is based in Malaga and is a local reporter for the Euro Weekly News covering Spanish and international news. Got a news story you want to share? Then get in touch at [email protected]

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