Spain | Cantabria Economic Outlook 2022

Cantabria's GDP grew by 5,3% in 2021. But the war in Ukraine and sanctions reduce growth expectations. Thus, Cantabrian GDP is expected to increase by 3,3% in 2022 and to slow down in 2023, when the increase will be 0,7%.

Key points

• Key points:
• Cantabrian GDP is expected to grow by 3,3% in 2022. The most recent data already show a slowdown in the economy, which will continue in the coming quarters.
• In 2023, regional GDP is expected to increase by 0,7%, due to the fall in European demand, higher energy and transport prices, and higher financing costs.
• Cantabrian families and companies are facing this environment in a better position, with less debt, more assets and without imbalances having accumulated in certain sectors. The acceleration in the execution of NGEU funds will support investment. In addition, lower exposure to the automotive sector, lower inflation, domestic tourism and more dynamic exports of goods also allow for a positive growth differential compared to other regions in northern Spain.
• By the end of 2023, Cantabria's GDP per capita could already be back to pre-crisis levels. The regional economy has already recovered pre-crisis employment levels, and 3,600 jobs could be created over the 2022-2023 biennium, while the unemployment rate will fall to 10,4% in 2023.
• The containment of inflation, the obstacles to investment that may hinder competitiveness or slow down the impact of the NGEU funds, the lack of adequate labour to cover business needs or the still high weight of temporary contracts in new hires, are the main risks for the Cantabrian economy. The implementation of the NGEU-related funds needs to be accelerated, and in the medium term the bias will depend on the reforms to be adopted in the coming months.

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