Spain | Aragon Economic Outlook 2024

Summary

Aragon's GDP will grow by 1.8% in 2024 and 2.4% in 2025. This will allow 25 thousand jobs to be created in the two-year period and reduce the unemployment rate to 7.6% in 2025.

Key points

• Key points:
• The slowdown shown by most indicators in the second half of 2023, labor restrictions in some sectors, high interest rates and still high inflation, the slowdown of the eurozone and geopolitical and economic policy uncertainty lead to a lower growth also in the initial part of 2024.
• After increasing by 2.4% in 2023, favored by the boost in exports and the automobile sector, the Aragonese economy will experience a more moderate advance in 2024 (1.8%), although with a profile that will go from less to more.
• Aragon's GDP is expected to accelerate to grow by 2.4% (2.5% in Spain), accumulating five years in a row with a GDP increase higher than the average of the last 25 years (1995-2019, 1.8 %). This is explained by the drop in fuel prices and inflation, which in turn will facilitate a reduction in interest rates.
• The improvement in the context will come with a progressive recovery of European demand, which with the normalization of activity in the automotive sector, will favor exports.
• Supply problems are perceived in certain sectors that limit growth: food exports and industrial production of consumer goods are reduced, affected by the drought. Visas for new residential construction show stagnation. Spending by foreigners moderates their contribution and their ability to contribute to growth may be exhausting.

Geographies

Topics

Tags