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Granada's Economy Set to Grow 2% in 2025, Lagging Behind Andalusia and Spain

Spain’s GDP is forecast to decelerate in the coming quarters with escalating global trade tensions adding to downside risks.

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Oficina de Unicaja en la plaza de Zocodover, en Toledo

Overview

  • Analistas Económicos de Andalucía projects Granada’s GDP will expand 2% in 2025, below the Andalusian average of 2.5% and the national rate of 2.4%.
  • Castilla-La Mancha’s economy grew by 3% in 2024 and is forecast to rise 2.4% in 2025, matching Spain’s average but trailing its own previous pace.
  • Granada’s unemployment rate is expected to fall to 15.1% on average in 2025 while overall employment in Andalusia could increase by 2%.
  • Exports of goods from Castilla-La Mancha jumped about 8% in 2024, outperforming Spain’s stagnating national export figures.
  • The Bank of Spain warns that GDP growth will gradually slow to align with potential output as rising trade tensions pose a key threat to forecasts.