Santa Cruz de Tenerife 19 Feb. (Europa Press) –
The Santa Cruz de Tenerife Chamber of Commerce predicts that the Canarian economy will expand by 3% this year following a 4% growth last year, according to initial estimates from the Canarian Statistics Institute (Istac).
“Perhaps we are no longer simply aiming for growth, but rather addressing the imbalances that we are all aware our model possesses. It is vital to lay the groundwork for comprehensive economic development in the Canary Islands, prioritising productivity and sustainability, transforming our main disparities into avenues for enhancement that will revitalise our economy, boost our competitiveness, and elevate the quality of life for all residents of the Canary Islands,” remarked the president, Santiago Sesé, during the presentation of the ‘Economic Caly Bulletin’ results.
In this regard, the president emphasised the importance of maximising the opportunities available. Above all, agile management is essential to facilitate informed and successful decisions, as opportunities do not wait, and losing them signifies a loss of competitiveness.
Santiago Sesé reminded attendees that these opportunities are associated with historic growth expected in 2024 and favourable forecasts for 2025, noting that last year saw the highest annual increase in retail sales nationwide at 5.2%, a 9.1% rise in the number of international visitors, and a 1% boost in business confidence—twice the national average—alongside other positive indicators such as “record figures” in tax collection.
Within this context, the head of the Chamber of Commerce supports establishing a strategy based on five key areas: investments in infrastructure and R&D; training aligned with labour market needs; housing policies to tackle the current deficit; diversification of energy and sustainability, and commitment to modernising and digitalising both the private and public sectors.
Meanwhile, the territorial director of Caixabank, Manuel Afonso, affirmed that “the Canary Islands economy is robust and exhibits sustained growth over time, demonstrating its national prominence.”
Along those lines, he stated that “the increases are validated, and there is confidence that the islands will maintain their lead in Spain’s economy through 2025, with somewhat lower figures expected around 3%,” as also indicated by the Chamber.
He expressed optimism about price stabilisation at around 2%, ensuring that positive macroeconomic data also benefits household disposable income.
The general director of the Chamber, Lola Pérez, noted that consumption continues to significantly drive the economy, as evidenced by retail trade sales leading national growth at 5.2%, bolstered by employment trends and impressive figures in tourist spending, which climbed by 12.6% in 2024 compared to 2023, averaging 189 euros per person per day in December.
Almost 18 million visitors
This surge in both domestic and international demand has invigorated various productive sectors, particularly benefiting the tourism industry and its knock-on effects on other activities.
Specifically, 17.7 million tourists (9.1%) arrived in the Islands last year, according to the Canarian Statistics Institute, of which over 15 million were international tourists, while the remainder were of domestic origin.
These outcomes were reinforced by a 1% increase in business confidence, twice the national average, attributable to the favourable results achieved by companies during the final quarter of 2024 and stabilised expectations heading into early 2025.
Conversely, the employment sector continues to showcase record figures, with average social security affiliations reaching 940,689 people in December (3.3%), and the EPA referencing over one million employed individuals, marking a historic milestone.
Indeed, the annual growth accounted for 37,300 new jobs, whilst the jobless count decreased by 29,400 individuals, placing the total at 138,400 unemployed.
Consequently, the unemployment rate in the Canary Islands fell by 2.49 points in 2024, settling at 11.91% of the active population—4.2 points lower than the previous year and 1.3 points above national figures—marking the lowest rate since late 2007.
Population growth of 26,814 individuals over the past year further propelled activity, although the intensity of this growth varied across the islands.
In absolute terms, Tenerife exhibited the most significant population increase last year with 10,956 additional residents, while Lanzarote demonstrated the highest proportional growth with a rise of 2.8%.
Furthermore, factors such as moderated inflation and declining interest rates have alleviated pressure on the purchasing power of households and the operational costs for businesses.
Geopolitical uncertainty
In fact, he indicated that the rise in prices has been moderated over the year, allowing the Canary Islands to conclude 2024 as the least inflationary autonomous community in the country, with an annual variation of the general index at 2.2% and underlying inflation rates reducing to 2.1% and 1.8% respectively, at the beginning of 2025.
Concerning the projected 3% economic growth, they acknowledged that the estimate is contingent on an increase in geopolitical and economic uncertainty worldwide, budgetary constraints, fiscal adjustments at the national level, and the capability for action and execution locally.
Santiago Sesé also elaborated that to “grow better,” it is essential to manage and balance demographic growth among the islands, promoting the development of ‘green islands’ through projects aimed at enhancing their competitiveness while imposing limits on growth in more saturated areas.
In this regard, he noted that over the past 25 years, the population in the Canary Islands has risen by 512,586 individuals, with Tenerife accounting for 245,698 of this number, followed closely by Gran Canaria with an increase of 122,782 residents.
This growth, he underscored, has been widespread across the islands, yet a marked disparity persists between the capital islands and the more tourist-heavy areas, such as Lanzarote and Fuerteventura, which experienced growth of 111.3% and 69.7% respectively, while the ‘Green Islands’ have seen their increases limited to fewer than 5,000 inhabitants during this period.
La Palma is noted for the lowest growth figures, both in absolute terms (2,621 additional residents) and relative terms (3.2%).
