According to Funcas, the Foundation of the former Savings Banks, all the Spanish autonomous communities will slow down in 2023 as a result of the impact of inflation on household purchasing power, in a context of global uncertainty and rising interest rates. Despite this, and after the strong recovery in 2022, this year five regions will already recover the GDP level they had before the pandemic: Andalusia, Valencia, Madrid, the Basque Country and La Rioja, which will join the five that had already achieved this milestone last year: Aragon, Castilla-La Mancha, Galicia, Murcia and Navarre.
In contrast, Asturias, the Balearic Islands, the Canary Islands, Cantabria, Castile and Leon, Catalonia and Extremadura will still remain below the level of activity recorded in 2019.
According to Funcas, six autonomous communities will grow above the national average this year: the Balearic Islands, the Canary Islands, Catalonia, Madrid, Navarre and the Basque Country; and two – Andalusia and Galicia – will do so practically in line with the average. And the main engine of growth will come from the stimulus of European funds and the full normalisation of tourist activity. The pull of tourism should be particularly favourable for the Balearic Islands and the Canary Islands, which will record the highest growth rates (3.3% and 2.2%, respectively), as well as to a lesser extent for Andalusia (1.3%) and Galicia (1.2%).
