APOLOGIES for my absence in recent editions… starting a new business and fatherhood is all consuming, as I discovered.
Your esteemed editor and I thought we should look at the variance between Spain’s national economy and the economies of the Costas. However, like any scribe worth his weight in salt, I am going to add a twist to the debate.
In reality, comparing national economic data with that of the Costas is futile, as there is so little to correlate. More importantly, the economies of the Costas are dictated by how flush northern Europeans are feeling.
The Costas are so reliant on the wealthy sets from countries like Sweden, Norway, Russia, Germany and of course, us Brits who are returning in our droves, taking advantage of strong Sterling and a healthy UK housing market.
The leading northern European nations dictate the pace of the Costas economies, they influence the number of new retail outlets opening, the brands and styles, shops, bars and restaurants, even the type of cars we rent at the airport.
The often more stable economies of northern Europe keep the Costas alive and luckily for Andalucia, Valencia and Murcia, they do not have to bench-mark themselves against the rest of Spain.
The Costas’ micro economies are influenced by international forces which are a mixed bag, like second home tax laws, pension pot release, golf addiction, devalued currencies or retirees heading for the sunshine.
The cosmopolitan Costas thrive on the feel good factor outside Spain’s economic boundaries, and enjoy a far more global reach.
And another important thing to consider – the are perhaps inherently more resilient to economic peaks and troughs.