Monday, May 16, 2022

Canarian economy grew twice as much as the Spanish economy during the first quarter

Growing economy

The Canarian economy grew by 12.2% during the first quarter of 2022, compared to the same period of the previous year, according to the quarterly data prepared by the Instituto Canario de Estadística (Canary Institute of Statistics) (ISTAC). This percentage practically doubles that registered at state level, which was 6.4%.

The Government's Vice President and Minister for Finance, Budgets and European Affairs, Román Rodríguez, highlighted the intensity of the economic recovery that the Canary Islands are experiencing, despite an international context characterized by supply problems in global chains, the effects of the Russian invasion of Ukraine and inflationary tensions. An intensity, however, that will be conditioned by these uncertainties.

Rodríguez explained that, despite all these circumstances, the Canarian economy is showing an "excellent" performance, which also stems from the reduction in unemployment, the increase in registered Social Security affiliates during that first quarter and that has been also extended to the month of April and the recovery of tourism to account for a third of the hotel overnight stays registered throughout the state during March; also, the state leadership in retail trade with an increase of more than 17% and the growth of tax collection in the first quarter of 51.4% compared to the previous year and 11.16% compared to 2019 - the last normal year before COVID - specifically, income from IGIC (Canarian VAT) rose by 61.9% compared to the first three months of 2021 and 12.6% compared to the 2019 financial year.

The data for the fourth month of the year has been especially positive, as the Canary Islands have not dropped below 200,000 unemployed since 2008 - and 198,981 were registered - and the number of Social Security contributors was the highest in history, with 839,049 affiliates.

"All these data put us before a hopeful scenario, although we will have to wait for the next few months to see if it consolidates depending on the development of events on a global scale," said the vice president, who added that, "in any case, what is discredited is the catastrophic discourse that is being instigated from certain political spheres”.

According to ISTAC data, the Canarian economy also grew by 0.5% compared to the immediately previous quarter, while the increase at the state level was 0.3%. 

All Canarian economic sectors registered increases compared to 2021, especially the services sector, with an increase of 14.2 percent, followed by agriculture, with 2.5%; industry, with 1.9%, and construction, with 1.3%.

By autonomous communities, only the data for Andalusia, Navarra, the Basque Country and Catalonia are available, which in no case reached 7% growth in the first quarter of last year.