In 2024, the Canary Islands experienced moderate economic growth, still driven by the rebound following the 2020 crisis. José Miguel González explained that, although the year was positive, growth will slow down in 2025 due to the structural limitations of the Canary Islands’ economy, which still relies heavily on tourism and public spending. Regarding employment, although record figures were reached in 2024, the statistics may be inflated by contractual modalities, such as the permanent discontinuous contract, which replaced temporary contracts.
Tourism remains the engine of the economy, but prosperity does not always translate into equitable benefits, with a high level of inequality in the cost of living. The lack of economic diversification and the reliance on tourism make access to essential goods, such as housing, difficult. The housing deficit is critical, with a gap of 100,000 homes, and rising prices are being exacerbated by foreign investment.
In 2025, fiscal policies will be marked by uncertainty and a lack of adaptation to current challenges. Despite moderate growth, the Canary Islands’ economy is expected to be weaker than in 2024, although still positive. Additionally, labor measures such as increasing the minimum wage and reducing the working week could generate economic tensions if not offset by increased productivity.
Full interview: HERE