The Tenerife economy shows signs of improvement in the last decade, sustained on the basis of the always thriving productive sectors, the services and construction –although he has not fully recovered–, with the tourism –gains in profitability due to inflation– as a great generator of wealth. The pending issue is “the imperative need” to develop large strategic projects for the Island. This is how the book The economy of Tenerife in graphics, 80 pages in which the Spanish Confederation of Business Organizations (CEOE) presented yesterday “not a photograph but the trend of more than ten years” (2010-2022). This is clarified by the author of the study, and director of the consulting firm Corporación 5, José Miguel. Gonzalezduring the event that took place in the Noble Hall of the Council. Together with González, the island president, Rosa Davilaand that of CEOE, Pedro Alfonso.
Short term, this outsourcing will continue to dominate, although in the medium and long term innovation, knowledge and training, with technologies as the axis, will mark the path towards possible economic diversification. One thing does not eliminate the other but rather the processes will share temporality in a specialized economy such as of Tenerife as the “vulnerable and dependent territory” that it is. González explains it in a didactic and exhaustive way.
Data. González outlined the data collected in the book and explained that “they highlight the importance of a vision for the future, where the local economy is strengthened, diversified and becomes more resistant to economic uncertainties.” In his analysis of the most relevant indicators, the economist indicated that the population of Tenerife continues to grow due to the arrival of more people from other places that compensate for the drop in birth rates.although there are 5.3% more people over 64 years of age since 2010 who “maintain” those over 16 in a demographic pyramid that is no longer a pyramid.
Unemployment. José Miguel González highlighted that, thanks to the size of the Tenerife economy and its productive specialization, the economic parameters are somewhat better than the average of Canary Islands “but not enough to maintain a lower unemployment rate.” This is above the average, an aspect that worsens if the comparison is made against the national and European comparison, widening the divergence in GDP per capita. González was forceful: “Maintaining double-digit unemployment figures, above 10%, is personally unacceptable.” One objective: return to the 9.7% of 2007.
Projects. The document addresses the need to implement pending strategic projects. That is where the meeting takes place with an insular institution that has as one of the pillars of Dávila’s mandate the maximum execution of budgets of more than one billion euros because “it is not enough to paint them,” he noted, “if they are not faced investments for return leadership in the Canary Islands to Tenerife, lost the last four years. He stated: “If Tenerife catches a cold, the whole of Canary Islands catches the flu.” Other aspects of coincidence were the need to end bureaucracy and the increase in public investment, although it already stands at one fifth of the island’s GDP. Alfonso added: “And that the banks give the necessary credits.” Dávila thanked the CEOE for “the effort in preparing a very useful document for administrations, since it helps analyze the behavior of the economy in a given scenario.” He regretted this loss of leadership in the previous mandate and assured that “our commitment is to recover it and work so that the Island once again becomes the economic power that drives the Canary Islands.” He stressed that they are working to ensure that the accounts are current on January 1, 2024 and to guarantee the maximum possible execution. He emphasized actions planned in collaboration with the private sector.
Recovery. Pedro Alfonso assessed that “covid was a missile for the Island’s economy that has not yet recovered.” He criticized the “excess bureaucracy” and legislation prone to “prior sanction” and not economic development. He also claimed the need to “recover leadership, through investments in infrastructure, as well as in energy and industrial matters.” He placed special emphasis on the importance of Tenerife not being left behind in this post-covid recovery. He noted: “Although the Gross Domestic Product (GDP) per capita exceeds the Canary Islands average by 2.8%, we remain behind the Spanish average since 2010.” He stressed that “there are challenges such as lower unemployment and improve GDP per capita». The president of the Tenerife employers’ association valued the 6.4% increase in Internet access ahead of the EU. He recalled that “our unemployment rate is very high and its negative effects on the economy are multiplied, if we compare them with Spain and Europe.” However, he glimpsed that “if the major works are carried out in six or eight years we could reach full employment.”
