Balearic Islands, Canary Islands, Madrid, Extremadura and Andalusia, the Autonomous Communities that will grow above average in 2023

The BBVA Research study lowers the GDP growth forecast for the communities, but all will remain on the rise

MADRID, 3 Ago. (EUROPA PRESS) -

BBVA Research released a report this Wednesday in which it forecasts a somewhat greater slowdown in the economy by 2023 than expected three months ago, which is why it lowers growth forecasts across the board in all the autonomous communities, although they will all see increased its economy and there are five regions that would be above the whole of Spain.

According to this analysis, the growth of the Balearic Islands (3.5%); Canary Islands (3%); Madrid (2.6%); Extremadura (2.4%) and Andalusia (2%) would be higher than the national average, while the Valencian Community, Catalonia and Castilla-La Mancha could grow in line with the whole of Spain, at 1.8%.

For its part, the expected growth would be lower than the average in Murcia and La Rioja (1.6%); Aragon (1.2%); Cantabria, Castilla y León and the Basque Country (1.1%); Asturias, Galicia and Navarra (0.8%), as can be deduced from these data.

Of course, BBVA Research points out that, if these forecasts are fulfilled, Extremadura, Castilla-La Mancha, Murcia, Andalusia, the Valencian Community and Madrid could recover the level of GDP prior to the crisis by the end of 2023.

This Observatory points to the effects of the war in Ukraine as one of the key factors for this slowdown in European demand for goods and tourism. This will limit the growth of Aragon, Navarra, Galicia and the Basque Country, among the industrial communities.

Catalonia, the Valencian Community, the Canary Islands and the Balearic Islands will also be impacted by the slower progress in exports of tourist services.

Regarding energy, BBVA Research highlights that recovery could be more difficult in the communities that are most dependent on its consumption, such as Murcia, Navarra, Aragón and Asturias.

In any case, the Observatory believes that the recovery could continue in 2023, also favored by stored savings, the dynamism of housing construction and the labor reform, which could help the advance of consumption and the improvement of productivity.