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Andalusia economic growth and policy expansion

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2026-09-10 12:24 UTC → 2026-10-04 11:03 UTC · added ~~removed~~

Andalusia’s economic performance continues to outpace national and European averages, driven by strong growth in industry, agriculture, and ICT. Second-quarter 2026 data confirmed a 0.9% quarter-on-quarter and 3.1% year-on-year GDP increase, with industry rising 5.1% and the information-and-communications sector surging 15.5%. Recent data highlights the rapid expansion of the technology sector. The region now hosts 14,661 establishments in high and medium-high technology sectors, representing a 34.3% growth rate since 2018—nearly double the Spanish national average of 17.7%. Key areas of expansion include telecommunications, R&D, cinematography, and specialized manufacturing. This high-tech segment employed 172,600 people in 2024, a 38.1% increase since 2018, now accounting for 5% of total regional employment. Industrial production has shown significant strength, with a 5.8% increase in June 2026, outpacing the national average of 3.8%. During the first half of 2026, Andalusian industrial production grew by 4.7%, exceeding the 1.1% growth recorded for the rest of Spain. This was driven by manufacturing in computer, electronic, and optical products (+22.4%), transport materials and aeronautics (+18.8%), and the chemical industry (+15%). Recent accounting data indicates that Andalusia is increasing its economic convergence with the Spanish national average. In 2025, the region reached 76.2% of the national GDP per capita, up from 75.3% in 2024. Andalusia’s real GDP grew by 3.2% in 2025, outperforming the national rate of 2.8%. Minister of Economy, Finance, and European Funds Carolina España attributed this trend to policies focused on “stability, competitiveness, administrative simplification, and fiscal policy,” marking a reversal of the relative GDP per capita decline observed between 2008 and 2018. To sustain this momentum, the regional government is prioritizing social and fiscal policies. The 2027 budgets are expected to focus on affordable housing and the continuation of tax reductions initiated in 2019. Vice President and Economy Minister Carolina España noted that these budgets are expected to receive the “highest parliamentary support in the region's history” due to political stability agreements. Housing initiatives managed by the Agencia de Vivienda y Rehabilitación de Andalucía (AVRA) include a plan for 5,140 protected units for residents under 35. This involves 27 projects aiming to deliver 8,663 total homes through new construction and rehabilitation, such as the restoration of the historic Corral de las Flores in Seville.

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