Spain | Canary Islands Economic Outlook 2021

Summary

The economy of the Canary Islands may have shrunk by 15.0% in 2020, and might grow 8.1% in 2021 and 9.6% in 2022. Public policies softened the impact of COVID-19. Consumption, investment and tourism will push the economy through 2021. With risks, the situation should be getting back to normal by 2022.

Key points

• Key points:
• Stronp GDP growth in the Canary Islands for 2021 and 2022, after a deeper contraction in 2020. This due to the greater relevance of social consumption and larger dependence of foreign toursim.
• Heterogeneous impact among urban areas, more favorable for Las Palmas and less for the South of Gran Canaria, Fuerteventura and Lanzarote.
• With the boost of consumpltion, investment and tourism, 11,000 jobs could be added between 2019 and 2022.
• The risks arise from the pandemic, not facing much needed reforms and NGEU funds' distribution.

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