The two archipelagos, Balearic Islands and Canary Islands, along with Madrid and Andalucia, were the four regions in Spain with the strongest economic growth last year.
This is according to a publication by Spain’s Independent Fiscal Responsibility Authority (AIReF). It identifies GDP growth in the autonomous communities in the first quarter of 2023.
The independent body – which monitors public finances in Spain – reports that the Balearic Islands experienced the strongest economic growth, with a plus of 5.9% year-on-year. This was followed by the Canary Islands at 5.7%, Madrid (4.3%) and Andalucia (4%). Furthermore, growth there is above the average for Spain, which is 3.8%, according to AIReF’s calculations.
Expansion of the islands
‘Among the quarter-on-quarter figures, the Balearic Islands and Canary Islands stand out for their expansion. They showed a growth of 0.9% and 0.8% respectively, both above the national average (0.5%).
In contrast, Murcia and Valencia region showed the smallest increases, with rates of 0.2% and 0.4% respectively. Whereas Asturias and Cantabria were at the bottom of estimated year-on-year growth over the past year.
These estimates were made in a context of high uncertainty, as the latest available information on the Spanish regional accounts refers to 2021 and was published in December 2022. The most up-to-date information for Spain as a whole was published on 28 April 2023.
Spain’s economic acceleration
The deputy prime minister and minister of economic affairs, Nadia Calviño, highlighted at a press conference Spain’s economic ‘acceleration’ in these first months of 2023. The GDP Spain had before the pandemic has been ‘practically’ restored.
Calviño also pointed to the fact that employment is at a record high. This is a ‘positive dynamic’ that she said will be reflected in the enrolment data that will be announced on Thursday when the Social Security Administration publishes April data.
Calviño also mentioned that Spain is growing faster than other major economies. And, furthermore, that the ‘biggest challenge’ is inflation, which is now mainly affecting food prices.