Spain | Region of Murcia Economic Outlook 2024

Murcia's GDP will grow by 1.6% in 2024 and 2.5% in 2025. This will allow 34 thousand jobs to be created in the two-year period and reduce the unemployment rate to 11.5% in 2025.

Key points

• Key points:
• The deceleration shown by most indicators in the second half of 2023, labor restrictions in some sectors, high interest rates and still high inflation, the slowdown of the eurozone and geopolitical and economic policy uncertainty lead to a lower growth also in the initial part of 2024.
• After increasing by 2.1% in 2023, favored by good behavior of the labor market, the Murcian economy will experience a more moderate advance in 2024 (1.6%), although with a profile that will go from less to more.
• The region of Murcia's GDP is expected to increase by 2.5% (2.5% in Spain), returning to a GDP increase similar to the average of the last 25 years (1995-2019, 2.6%). This is explained by the drop in fuel prices and inflation, which in turn will facilitate a reduction in interest rates.
• The improvement in the context will come with a progressive recovery of European demand, which will favor exports.
• Supply problems are perceived in certain sectors that limit growth: food exports and industrial production of consumer goods continue to show some weakness, affected by the drought. Visas for new construction show high volatility, while those for non-residential construction fall. Spending by foreigners moderates their contribution and their ability to contribute to growth may be exhausting.

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