The Canary Islands lead economic growth in Spain in the fourth quarter of 2023
The latest quarterly figures of the Gross Domestic Product (GDP) by the Fiscal Responsibility Authority (AIReF) reveal that the Canary Islands experienced the highest growth in Spain during the fourth quarter of 2023. With a growth rate of 1.1%, they were ahead of the national GDP growth of 0.6%.
Following the Canary Islands with impressive growth were the Balearic Islands (+0.9%) and Catalonia and Aragon (+0.7% each). These four regions surpassed the national GDP growth rate, as reported by the National Institute of Statistics (INE) on January 30th, 2024.
Regions such as Extremadura, Madrid, Castilla-La Mancha, Castilla y León, La Rioja, Valencia, and Murcia matched the national average with a growth rate of +0.6%. Meanwhile, Andalusia, Navarre, Cantabria, Galicia, Asturias, and the Basque Country recorded a slightly lower rate of 0.5%.
Year-on-year growth
In terms of year-on-year growth, the Canary Islands maintained their leading position, exhibiting the highest GDP growth in the fourth quarter of 2023 at 3.8% compared to the year before. The Balearic Islands followed closely with a growth rate of 3.2%, both surpassing the overall Spanish growth rate of 2%. On the contrary, the Basque Country reported the weakest growth at 1.3%, followed by the Principality of Asturias at 1.4%.
AIReF emphasises that its methodology relies on verified data and estimates for the national aggregate published by the Quarterly National Accounts (CNTR). The agency acknowledges the challenges posed by the "high uncertainty" in the territorial context, given that the most recent regional accounting information for Spain dates back to 2021, published on December 19th, 2022. In contrast, the latest national information was released on October 27th, 2023.
The National Institute of Statistics (INE) has warned about the increased uncertainty, with greater revisions in the estimates of the Quarterly National Accounts, further emphasising the need for caution in interpreting the data, according to AIReF. Nevertheless, the positive growth data for the Canary Islands is undoubtedly good news for the residents of the archipelago.
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