The Spanish economy will grow by 2023 to 2.4%; within this framework, the Balearic Islands will experience growth of 3.6% and will thus lead the Spanish economy. This is according to data from the BBVA Regional Observatory

The BBVA report indicates that the Spanish economy will grow by 2023 to 2.4%, a rise that will be led by the Balearic Islands, the Canary Islands and Madrid, according to its Regional Observatory. The study points out that, in 2023, exports of services will allow GDP growth to be above average in the Balearic Islands (3.6%), the Canary Islands, Madrid (3.0%) and Catalonia (2.6%).

In addition, Castilla y León (2.2%), Asturias (2.1%) and Galicia will also be above average, due to the recovery of the industrial sector and sales of goods to the rest of the world.

According to this BBVA report, the decline in investment and household consumer spending since mid-2022 has limited growth in regions with a greater dependence on domestic demand. Such is the case of the Valencian Community (2.1%) and the Region of Murcia (1.8%), which will experience smaller advances than the national set, the report notes. “Difficulties remain in car production, while the cost of energy and regulatory uncertainty may still be problems in some sectors”.

With regard to the forecasts for 2024, the slowdown in the tourism industry, the rise in interest rates and the delay in the European New Generation funds led BBVA to revise downwards (0.5 pp to 2.1%) growth for 2024.