Regional Analysis Spain

This Working Paper analyzes the changes in the definitive financing of the autonomous communities under the common system from 2002 to 2021.

The crises of the last fifteen years have resulted in a sharp increase in regional debt, which has also conditioned its structure. The FLA provided access to financing at a time when the markets were closed on very favourable terms, and has become the main financing instrument for Regional Governments.

According to BBVA card spending data, the summer months have been characterized by a slight improvement in tourist spending compared to the beginning of the year, driven by the good behavior of consumption by Spaniards and despite the sluggishness of tourism by of foreigners.

Asturias' GDP could grow by 2.1% and in 2023 recover the pre-pandemic level. By 2024, the increase in activity will accelerate to 2.5%, and during that year it is expected to be able to recover GDP per capita. If these forecasts are met, Asturias would create more than 16,000 new jobs by 2024.

Credit is on the decline for businesses and households alike, as interest rates continue to rise. Perhaps most notably, it is doing so while the recovery continues. The deleveraging of the Spanish economy is not just a recent trend, and is likely down to various structural factors.

This Working Paper analyzes the settlement payment for 2021 under the common system of autonomous communities financing, recently published by the Ministry of Finance.