Alicante Struggles to Keep Pace with Spain’s Growth Leaders
Alicante is slowing its rise relative to Spain’s most dynamic provinces. Even as the broader regional economy shows recovery since 2015, several indicators signal a softer rhythm for Alicante. Exports and hotel overnight activity lag behind the national average, signaling lower competitiveness within the country’s regional hierarchy.
The findings come from the Socioeconomic Status Report for the third quarter of 2022. The Alicante State Institute of Economic Research examined eight years of development data, revealing a persistent growth gap between the province and faster expanding regions. The assessment notes that while social indicators such as employment have improved, productive activity remains restrained, and the added factor of downstream water transfers further narrows Alicante’s competitive edge compared with peers.
The overall message is clear: the province is growing, but the pace is modest. Participation and employment have recovered toward pre-crisis levels, yet economic momentum has not kept pace with high-performance areas like Valencia, Málaga, Gipuzkoa, and Pontevedra. Export performance emerges as a critical stress point for Alicante, despite a 15.25 percent rise in overseas sales during the third quarter. This uptick is positive but still trails the national growth rate of 24.4 percent, producing a disproportionate share of national trade that remains below Alicante’s population weight. Exports from Alicante accounted for roughly 1.8 percent of Spain’s foreign trade, far below its approximately 4 percent population share, marking a decline from the previous year’s 1.94 percent.
Data highlights in tourism and accommodation show Alicante attracting far fewer overnight stays than other provinces. In contrast, Málaga and Valencia reported substantial gains in overnight stays from 2015 to 2022, reinforcing their larger market shares in the national lodging sector. The province also experiences a slower pace in housing construction, with sales concentrated in the resale market rather than new builds, unlike neighboring provinces that continue to attract fresh property development.
Financial indicators reflect this pattern. Bank deposits in Alicante rose by more than 20 percent over the eight-year window, lagging doubles in Málaga and Pontevedra, and well short of Valencia’s 52.9 percent increase. The same period shows a noticeable decline in outstanding loans, with Alicante posting a 28.5 percent drop while more dynamic regions posted growth. These trends point to a cautious credit environment and less vigorous private investment activity in the province.
Nevertheless, the report notes that regional investment programs are helping to stabilize the area and support projects that could reshape the local landscape. The analysis acknowledges changes over the past two decades and remains cautiously optimistic about 2023, suggesting that policy and investment choices could accelerate Alicante’s trajectory toward higher growth and resilience.
Ineca raises concerns about budget execution for Alicante
The Socioeconomic Status Report also highlights that the latest provincial GDP update shows the pandemic’s impact on the economy. In Alicante, wealth declined by 9 percent during the crisis, slightly less than the national drop of 10.2 percent, amounting to a multi-billion euro loss. GDP per capita fell to a negative 9.8 percent, with per-person income sliding to about 17,999 euros from 19,944 euros in 2019. Despite the setback, the province moved up one spot in the national rankings to 43rd place in the latest assessment.
Reviewing the third-quarter data, observers note that while indicators have improved, the local labor market remains unable to absorb a significant number of unemployed residents. The unemployment rate in Alicante stays above the national average, signaling a structural challenge in matching supply with evolving demand within the regional economy.
Overall, the report emphasizes that a combination of public investment and strategic initiatives will be essential to unlocking stronger employment growth and broader-based economic momentum in the province. Policymakers and business leaders are urged to align investments with market opportunities to close the gap with Spain’s most dynamic regions.