Spain | Andalusia Outlook. March 2021

Summary

Andalusia's GDP contracted by 11.2% in 2020 due to the weight of tourism. Growth of 5.4% is expected in 2021 and 6.6% in 2022, driven by the progress of vaccination, the recovery of consumption and the impact of the European NGEU funds.

Key points

• Key points:
• Between 2019 and 2022, 128,000 jobs will be created in the region, bringing the unemployment rate to 20.9% at the end of the period, although GDP per capita will remain 0.3% below the pre-crisis level.
• The drop in affiliation in 2020 was more intense in tourist areas like the Costa del Sol, exceeding 4%, compared to areas with greater agricultural or public activity like Huelva and Jaén, which managed to increase their employment.
• Food exports practically recovered their pre-crisis level at the end of 2020, while sales of energy and semi-manufactures slowed down the recovery of Andalusian external demand.
• European funds managed by the community could reach 18 billion in 2021, while ICO guarantees granted in the region rose to 9.7% of the regional GDP at the end of January.

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