The Basque economy will grow by 5.3% in 2022 and 4.5% in 2023, according to BBVA

The Basque economy will accelerate its growth in 2022 up to el 5.3% and in 2023 the increase in the Gross Domestic Product (GDP) could be in the 4.5%. If these forecasts are fulfilled, before the end of the year the activity prior to the pandemic would recover.

This is reflected in the “Basque Country Situation” report presented this Thursday by Rafael Doménech, head of Economic Analysis at BBVA Research, and Carlos Gorría, director of BBVA’s Northern Territory, at a telematic press conference from Vitoria-Gasteiz.

According to BBVA Research, exports of goods, industrial activity, tourism and consumption supported the recovery of the Basque economy in 2021 which was located in the 4.7%.

at the beginning of the years 2022, economic activity would have suffered a slowdown due to various factors. Said report mentions the omicron variant and the brake on the advance of consumption due to the new restrictions, the bottlenecks and the interruption of the supply chains that condition industrial activity, and the increase in energy prices and raw materials which increase production costs and export prices.

However, facing the next quartersBBVA Research forecasts an acceleration in the growth of the Basque economy to 5.3% overall for the year.

Refering to membership to Social Security, the Basque Autonomous Community has returned to pre-crisis levels. By province, BBVA Research highlights the growth in employment in Greater Bilbao, Donostialdea and in the Llanada Alavesa.

The Basque Autonomous Community ended the year with a unemployment rate of 9.8%. A good evolution of the unemployment rate is also expected, falling to 9.3% in 2022 and 8.3% in 2023.