Alicante Institute for Economic Research (Ineca) forecasts that the province will extend a modest growth phase this year, aiming to break the occupancy record set last summer. The outlook also flags persistent structural issues that affect small firms and keep unemployment rates higher than desirable. Alicante is urging governments to increase investment to strengthen its economy and shield it from sharper market swings seen elsewhere in the country.
These views were shared on Tuesday by Nacho Amirola, head of the Alicante think tank, Quino Palaci, chair of Ineca’s working committee, and Francisco Llopis, Ineca’s research director. They spoke during the presentation of the Economic Report for 2022, outlining preliminary expectations for 2023.
We are optimistic because the productive machinery remains active, and the data known so far for 2023 suggests a slightly improved trajectory over late 2022. The path of development continues, but final outcomes must still be confirmed. Some indicators show signs of fragility, including a slowdown in new home construction visas and export growth that rose only 2.3 percent in the last quarter, a figure that trails inflation and signals a softening in activity.
According to the Ineca president, the city’s growth remains uneven and vulnerable to market and geopolitical shifts. Only higher public investment, aimed at boosting productivity and competitiveness of local firms, can reduce the region’s exposure to fluctuations in the market.
Balance
The balance section highlights a strong tempo in entrepreneurial activity and employment. More than 400 new firms formed each month, signaling sustained business opportunities. Employment shows meaningful progress, with an increase of over 29,550 participants and 1,858 newly registered self-employed workers in the General Regime. The self-employed segment has enjoyed 125 consecutive monthly increases in registration. The number of employed individuals per account sits at 138,351, accounting for about 20 percent of total provincial employment, versus a national average near 17.5 percent.
Ineca escalates focus on infrastructure and calls for investments totaling 2,050 million
Francisco Llopis notes that while this figure is not negative, it reveals weakness in Alicante’s economy linked to the small size of most local businesses. He observed that around 18,000 self-employed workers would need to transition into wage employment to align Alicante with the national average. The prevalence of small firms also creates structural unemployment pockets, with more than 140,000 people still registered as unemployed by year’s end, according to the expert analysis.
The report also points to ongoing issues that could influence Alicante’s performance this year. Tourism remains a bright spot with room for additional gains, yet the overall context includes concerns about diminished purchasing power. Llopis notes that when the 2021 and 2022 data are added, prices rose by 12.1 percent while wages increased only 4.73 percent, implying a seven-point erosion in household purchasing power that could curb consumption in certain sectors.
Ineca cautions that reducing transfers would cut the province’s agrifood exports by 40 percent
Against this backdrop, Ineca emphasizes the need for policy measures that support export-oriented sectors while maintaining domestic demand, especially in agrifood products which form a key pillar of the local economy.
Mediterranean House
The Ineca Economic Report presentation took place at Casa Mediterráneo, a venue chosen for its significance beyond the usual setting. The event explored whether the Alicante Research Institute could become a member organization aligned with broader diplomatic and economic cooperation. Political and business representatives attended to hear the assessment and implications for the region.