After 2023, economic activity slowed, and the provincial economy entered the new year with caution. Sector opinions vary, yet the Alicante region remains a backbone for tourism, which continues to perform well and shows solid potential. At the same time, inflation shapes European consumer behavior, especially in footwear.
Generally, Salvador Navarro, president of the autonomous employers’ association CEV, expects 2024 to be positive despite negative momentum in recent months. Employment remains strong, enabling households to sustain spending. The European Central Bank signaled that no new rate hikes would be needed, and inflation is under control. Yet lingering concerns from the previous year are fading, suggesting activity can stay positive even as global slowdown pressures external sectors. (Source attribution: Alicante economic outlook report)
Navarro also notes a political development: the formation of a government reduces a major source of uncertainty that dampened business investment last year. In the Valencian Community, pro‑business policies promise administrative simplification. The expansion of the Port of Valencia is viewed as a potential driver for fresh investments by both international and local companies. As the year unfolds, analysts are likely to raise GDP growth forecasts, with the organization projecting a range of 1.5% to 1.75% for 2024. (Source attribution: Regional economic briefing)
Foundations for growth
Similarly, Maite Antón, president of the Alicante Family Business Association, sees the provincial economy continuing to move forward despite ongoing uncertainties. She emphasizes the need for tax relief to boost firms’ competitive edge and stimulate activity. If consumption and activity pick up, a solid base for growth exists, Antón argues, urging the removal of bureaucratic barriers as soon as possible. (Source attribution: Family business council update)
Cesar Quintanilla, president of the Alicante Province Labor Union, notes that the slowdown arrives when companies are better prepared than in past crises. They have strengthened finances and reduced debt, and they have learned to stockpile after supply chain disruptions at the end of the pandemic. This resilience helps cushion shocks from events such as regional disruptions in other areas. (Source attribution: Labor union annual review)
Foreign tourism business in Alicante grew by 30% this year, reaching 6.8 billion
Tourism remains the sector with the most optimism for the new year. Forecasts for 2024 point to strong performance as the post‑pandemic shift sustains demand for travel and leisure. Spending priorities are increasingly led by experiences and free time. Hosbec’s president notes that New Year’s reservations with his company are higher than a year ago and are being booked well in advance. Ongoing geopolitical tensions, such as in the Middle East, could redirect demand to neighboring destinations in the Western Mediterranean, contributing to stronger sector figures. (Source attribution: Regional tourism insights)
View of Benidorm beach in high season. David’s Revenge
Public affairs
Another sector expected to improve is construction. Javier Gisbert, president of FOPA, remarks that two to three years could bring a strong upturn for the industry. Although only a portion of New Generation funds has been deployed, significant parts must be spent by 2026, with much of that allocation earmarked for studies. Private‑sector orders are expected to rise, and projects are likely to be more profitable as material costs have risen in recent years, forcing some projects to be completed at a loss on earlier awards. (Source attribution: Construction industry forecast)
Foreigners were the main driver of employment in Alicante last year
Jesualdo Ros, general secretary of the Provincial Supporters Association, predicts a year of stabilization in the housing sector. The first half of 2023 saw activity decline as many abandoned projects wrapped up, while fewer new initiatives emerged and expected rates stabilized. (Source attribution: Provia housing outlook)
Jorge Ibanez, president of Fempa, foresees a solid start to the year in the metal sector after a relatively ordinary finish in 2023. He highlights ongoing orders for installations and air conditioning and notes that the market will likely pick up in the coming months as projects resume online after the pause. (Source attribution: Fempa market briefing)
Worry
Shoemakers view 2024 with concern due to a renewed decline in exports and a squeeze on families’ purchasing power. Adverse weather in major European markets has reduced demand, with the year‑over‑year drop around 8% and a 40% decline recorded in October. A weaker market might lead to fewer orders at upcoming fairs, signaling a tough year ahead, according to the president of Avecal. (Source attribution: Footwear industry notes)
An image from the Futurmoda competition held at IFA. Matias Segarra
Amidst the challenges, stability remains the watchword. The industry is preparing for changes in labor regulations, resisting calls to reduce working hours, and tracking European shifts on recycling and labeling. Yet the sector has proven its resilience during previous crises, offering a path through adversity.
For the toy sector, predicting 2024 remains difficult as numbers for the current campaign are not final. The week of the Three Kings holds particular importance for defining the annual outcome. Like footwear, this sector faces inflation‑driven pressure on families and constrained exports, but there are signs of a national market awakening. José Antonio Prieto, general manager of the association, believes easing Euribor and a controlled inflation trajectory could create room for improvement and a better close to the year. (Source attribution: Toy sector update)
Drought
The greatest threat to agriculture in Alicante is drought. José Vicente Andreu, president of Asaja Alicante, warns that reservoirs in irrigated areas are low, and drylands face substantial production risks. The prospect of interrupted plantings for seasonal vegetables, such as artichokes, and the potential loss of thousands of fruit trees loom large. Climate change, erratic rainfall, and insufficient winter for fruit hardening compromise yields, yet export demand remains strong, helping to offset some of the agricultural pressures. (Source attribution: Agricultural outlook)