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Andalusia’s economic growth overtakes Catalonia’s

Catalonia’s economic dominance has been dwindling since the 2008 financial crisis. For the first time in history, Andalusia has overtaken its northern neighbour for investment and employment opportunities. 

  • Andalusia continues to register more new companies since March 2020
  • Andalusia now contributes the highest number of self-employed workers in Spain. 
  • One in three self-employed workers in Spain is now from Andalusia.

GDP for the Andalusian community as a whole is still relatively low. However, the region is showing tremendous potential for an economic boom. Looking at the recent statistics released by the National Institute of Statistics (INE) of new commercial companies in the Andalusian territory. 

  • In March and April of 2021, Andalusia’s region saw 2,110 and 1,589 new firms, whereas Catalonia registered 2,031 and 1,578, respectively.
  • In the first quarter of 2021, 4,937 firms were registered in Andalusian territory, compared to 5,259 in Catalonia. The difference is only 322 companies.
  • In 2016, this difference was 5000 in Catalonia’s favour.
  • In last year’s difference, Catalonia’s count was 1200 more entities than Andalusia. 
  • Year-on-year – Andalusia has incorporated 27% more new companies between January and March. Catalonia has added 11% throughout the same period. 

Political Stability 

The Andalusian government is presently stable and diligently attempting to reduce the tax-paying factors for companies and employment sectors. Furthermore, a cheap, educated workforce, an abundance of space, an ideal geographical location, and enviable quality of life make Andalusia a prime location for companies looking to establish themselves in Spain. 

The end of thirty years of social governance will only bring more jobs, consumerism and attract further investment. 

Employment and Self-employed

The president of ATA and vice president of CEOE, Lorenzo Armor, says, “Today Andalusia offers stability, legal certainty, better taxation and, ultimately, an appropriate ecosystem for business development.”

Most statistics comparing recent and past employment rates in Andalusia indicate an upward graph of economic success. 

  • At the end of June 2021, Andalusia had 2,073,219 workers registered as employed. These employees came through the 237,977 companies registered with the Andalusian Social Security.
  • The rate of new employment opportunities (for Social Security registered firms) saw a 7% spike from June 2020 to June 2021. This 7% is equivalent to an additional 135,852 new employees.
  • The Active Population Survey (EPA) of the INE labels Andalusia as the most significant contributor to generating employment. 245,700 increase in employees in the Andalusian territory compared to the last year. On positions two and three are Catalonia and Madrid, with 189,600 and 161,500 job creations, respectively. 
  • Owing to the recovery of the country’s economy, plenty of fresh investments opportunities, enticing employment policies, Andalusia is benefitting on a large scale. 

With improved mobility, better digital infrastructure, and new laws supporting entrepreneurial activity, Andalusia is seeing record-breaking numbers of people looking to invest and live within its borders. 

Maria Luisa Castro

Director and Founder
María founded CostaLuz Lawyers in 2006 and is the Firm’s Director. María is registered Lawyer number 2745 of the Cadiz Bar Association and is licensed to practice in all areas of law throughout Spain. Working closely with her team, María has developed the firm into one of the most highly regarded and trusted Spanish Law Firms acting for English-speaking clients with legal problems in Spain. We’re here to help. Contact us today for a free no-obligation consultation.
 

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