Málaga maintains positive values in the main economic indicators, exceeding the Andalusian and national averages
MÁLAGA, 15 May. (EUROPA PRESS) –
The province of Málaga continues to maintain positive figures in the main economic indicators and presents figures above the Andalusian and national averages, although economists warn of the problems of the housing market tension, lack of infrastructure, and the need for greater public investment against drought.
This was announced by the College of Economists of Málaga at a press conference presenting the economic barometer of the province for the first quarter of 2024, led by the president of the college, Manuel Méndez de Castro, along with the vice-dean, Antonio Pedraza, and the secretary and director of the Studies service, Javier Font.
The president of the economists highlighted and valued that Malaga companies have become accustomed to and normalized being ”in a context of uncertainty.” ”Despite all the uncertainties in the evolution of all the geopolitical disturbances we have, a complex national and international political scenario, entrepreneurs demonstrate that they have a lot of confidence in the evolution of their companies.”
Méndez de Castro highlighted this paradox ”because in Malaga, we are really very influenced by what happens outside” in reference to tourists visiting the province and tourism as ”the economic mainstay” of the province.
The president of the college then highlighted the main problems for the Malaga economy, which he described as ”worrisome”: housing prices, in a situation he said is ”chronic”; lack of infrastructure, especially mobility infrastructure; and very low public procurement.
”While public procurement in Spain has grown by 14% in this first quarter, the State is spending more because it also thinks it is a way to reactivate the economy; in Andalusia, public procurement has decreased by 25%, and in Malaga by 75%, three times more,” he emphasized.
Méndez de Castro interconnected the problems and exemplified it by pointing out that if there were a more efficient mobility infrastructure in the metropolitan area, especially towards the interior due to the saturation of the coast, there would be people who would decide to live outside and work in Malaga.
”Everything that goes hand in hand with increasing the productive fabric throughout the province, because it can be transported more easily, would help and boost that the differences in socioeconomic municipalities were lower,” he emphasized.
GDP, CPI, AND MERCANTILE COMPANIES
Although the College of Economists currently does not have the GDP of the province, it is known that Andalusia’s GDP is 1.7% and 1.8%. ”Taking into account that historically the GDP of Malaga has been higher than that of Andalusia and Spain in previous years, we can estimate a growth for this first quarter of 2024 around 2%, although it will not exceed 2.1%,” they emphasized.
Javier Font pointed out that the Consumer Price Index (CPI) in Malaga is very similar to that of Spain, at 3.3. ”The good news is that the underlying CPI is below, at 2.1%. Therefore, they are still high figures. The good news is that they are better than the previous year, but they are still high,” he emphasized, while noting that in other geographic areas the CPI has been ”much higher.”
On another note, Malaga maintains a growth in newly established mercantile companies higher than the Andalusian and Spanish averages, although with less investment in capital. The number of imports has decreased, and there is a slight increase in exports — especially in the technological and agri-food sectors — lower than the Andalusian average and higher than the Spanish one.
TOURISM AND INFLUENCE OF THE INTERNATIONAL SCENARIO
They pointed out that where the Malaga economy does present truly remarkable growth figures is in the number of travelers staying in hotel establishments, slightly higher than the Andalusian and Spanish averages, and especially in hotel overnight stays, both in hotels and tourist apartments.
The significant increase in travelers staying in tourist apartments stands out, tripling the Andalusian growth. There is also an increase in hotel occupancy rates, although slightly lower than the Andalusian and Spanish averages.
Air traffic is another important data point in the province, as it has experienced a growth of 20.35% compared to 17.75% in Andalusia and 11.88% in Spain, with the Malaga Costa del Sol airport solidifying its position as one of the main airports in the country.
During his speech, the vice president of the College of Economists, Antonio Pedraza, pointed out that Malaga is a province ”very cyclical” in its economic behavior, and regarding the influence of the economies of European countries, he highlighted how currently ”we do not have the wind at our backs” from the German economy.
He also added that in Malaga ”we live a lot in the winter of the consumption of the residents who are permanent on the Coast,” a reflection linked to the Golden Vista, which he described as ”a free showcase effect because it does not affect the social problem we are going through, the root problem of the lack of capacity to buy social housing, housing at medium-low prices, which is what the market is demanding.”
Also, regarding the province’s relationship with the rest of Europe, Javier Font pointed out that ”Malaga is a dynamic province and therefore receives a lot of influence from abroad and everything that happens outside, how international markets evolve, especially the European markets — Germany, Great Britain…– we are the main recipients of tourists from those markets and therefore are very directly affected.”
INVESTMENTS TO MITIGATE DROUGHT
The three representatives of the College of Economists of Malaga emphasized the need for continued investment in hydraulic works to mitigate the effects of drought, as it is a structural problem and not a cyclical one.
Font emphasized that to mitigate the effects of drought ”we only have the weapon of infrastructure, there is no other.” ”Drought should not be news because if we had sufficient hydraulic infrastructure, we would be able to perfectly mitigate those cycles of lack of rain that we lack so much and that directly affect both the agri-food sector, a very important sector in the province of Malaga, and the tourism sector, as it is also another very important factor in our economy,” he emphasized.
Regarding the labor market, the barometer shows an increase in the active population in Malaga, reaching almost 4%, nearly doubling the Andalusian and national growth rates, increasing the number of employed and decreasing the number of unemployed.
In this sense, Malaga performs better than the Andalusian and Spanish averages in both magnitudes, also increasing the number of affiliates to Social Security by 3.26% compared to 1.96% in Andalusia and 2.58% in Spain.