Spain | Andalusia Economic Outlook. Second Half 2025

Summary

Growth above the national average: Andalusia's GDP will advance by 3.2% in 2025, moderating to 2.3% in 2026, but remaining above the historical average.

Key points

• Key points:
• Andalusia's GDP in 2025: solid growth despite the slowdown and structural challenges in housing, energy, and productivity.
• Employment and driving sectors: Employment continues to increase, driven by the public sector, professional services, and commerce, with Malaga and Seville as the main centers.
• Growth support factors: The region benefits from lower energy prices, a looser monetary policy, NGEU funds, and increased investment in housing and defense.
• Risks and bottlenecks: Limitations persist due to a shortage of affordable housing, low productivity, a labor shortage, and energy costs. In addition to political uncertainty.
• Positive outlook but with structural challenges: The creation of 180,000 jobs is projected between 2025 and 2026, with an unemployment rate of 13.4% in 2026, although convergence with Spain and Europe remains the major challenge.

Geographies

Topics

Tags