Spain’s economic jewel in the crown

Which areas lead Spain's economic growth?

Spanish economy. Credit: Per Bengtsson/Shutterstock.com

Recent statistics have revealed the areas of Spain which are leading the charge in Spain’s economy, the results may surprise you.

During the final quarter of 2023, a remarkable trend emerged, showcasing the Canary Islands and the Balearic Islands as pivotal growth drivers.

On January 30, the Independent Authority for Fiscal Responsibility (AIReF) unveiled insights, based on the Quarterly GDP Estimation Methodology by Autonomous Communities.

The study revealed that while Spain’s overall GDP grew by 0.6 per cent, the Canary Islands surged ahead with a 1.1 per cent increase, and the Balearic Islands followed closely with a 0.9 per cent rise. Catalonia and Aragon both posted growth rates of 0.7 per cent.

Regional performance overview

This growth trajectory placed these regions above the national average, highlighting their significant contribution to Spain’s economic landscape.

The Canary Islands not only led this quarter’s growth but also topped the annual increase with a 3.8 per cent growth rate, outpacing the Balearic Islands’ 3.2 per cent.

This is in stark contrast to the Basque Country and the Principality of Asturias, which experienced the lowest growth rates at 1.3 per cent and 1.4 per cent, respectively.

Methodology amidst uncertainty

AIReF’s methodology integrates monthly economic indicators, annual data from the Regional Accounting of Spain (CRE), and national estimates from the Quarterly National Accounting (CNTR).

However, AIReF cautioned about the ‘high uncertainty’ surrounding these figures, citing the most recent regional accounting data from 2021 and national data from October 2023.

They noted that these estimates carry ‘greater uncertainty’, echoing concerns from the National Institute of Statistics (INE) about significant revisions to the Quarterly National Accounts.

This data snapshot provides a nuanced view of Spain’s regional economic dynamics, underscoring the islands’ pivotal role in the nation’s economic performance.

Despite the inherent uncertainties in the data, the Canary and Balearic Islands’ robust growth rates stand out, suggesting a potential shift in the economic centres of gravity within Spain.

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Written by

John Ensor

Originally from Doncaster, Yorkshire, John now lives in Galicia, Northern Spain with his wife Nina. He is passionate about news, music, cycling and animals.

Comments


    • Ordinary Joe

      02 February 2024 • 15:19

      Spanish Economic Growth !
      Well, that sort of progress simply cannot be allowed…
      Spanish Bureaucracy, the only Real Growth Industry in Spain, will see to that, muy pronto!!
      Now that those areas have been identified a Royal Something is sure to Follow.
      And wipe those Aberrations off the Spanish Economy.
      Sad.
      But True.

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