The Balearics, Canaries, Catalonia, and Madrid lead economic growth in Spain

11/2/23, 9:40 AM By Costas News Business Photo Credit: Rough Guides

Despite the notable slowdown experienced by the Spanish economy, economic growth continues, especially in some regions of the country. In the third quarter, marked by the evolution of tourism, several areas saw significant growth in their Gross Domestic Product (GDP) above the national average, which is 0.3% on a quarterly basis.

Particularly, this is the case for the Balearic Islands. According to data from the Independent Fiscal Responsibility Authority (AIReF), the Mediterranean region's GDP grew by 0.6%, double the national average. Likewise, the summer season also benefited the Canary Islands, with a GDP growth of 0.4%.

Similar figures were recorded in the economic powerhouses of our country, as both the Community of Madrid and Catalonia grew by 0.4% between July and September.

On the other hand, the regions with the slowest economic growth are Asturias, the Basque Country, Cantabria, La Rioja, Andalusia, and Navarre, where GDP growth did not exceed 0.2%.

However, the fact that some regions grow more than others does not mean that the economic slowdown is not widespread. Both the Balearic Islands, the Canary Islands, Madrid, and Catalonia experienced slower growth between July and September than in the second quarter of the year.

This phenomenon is also evident in regions with lower growth, which lost between one to two tenths of a percentage point in GDP momentum.

Furthermore, these trends are replicated on an annual basis. In the third quarter of the year, the Balearic Islands recorded the highest GDP growth, followed by the Canary Islands, with increases of 2.9% and 2.3%, respectively. Madrid and Catalonia saw increases of 2.1%. All these growth rates exceed the national average for GDP growth, which was 1.8% in the third quarter.

What does the future hold? Business and company revenue data are not promising, indicating a stagnation for the fourth quarter. For 2024, the slowdown is expected to intensify. Although the government hopes for a 2% economic growth, analysts predict that the GDP will evolve below this figure.