4 Apr, 2019 @ 14:58
1 min read

Andalucia economy could lose €1.1 BILLION in no-deal Brexit, Junta warns

Spains economy e
Spains economy e
IMPACT: A hard Brexit would damage the Andalucian economy

THE Andalucian government has called for ‘tranquility’ after economic forecasts showed a hard Brexit would cost the region’s economy up to €1.1 billion.

The province is particularly vulnerable to the economic shock of a disorderly UK exit as Britain accounts for €4.5 billion worth investments annually.

After nine years of sustained growth, Andalucian exports to London fell by 10% in 2018 which pushed the UK behind Germany, France and Italy.

Economy Minister Rogelio Velasco said: “We have made calculations under different scenarios, in the pessimist, it would cost us €1.1 billion and in the optimist, something less than €500 million.

“The Andalucian companies that export to the United Kingdom have already redoubled their efforts to export to other countries, such as Germany, the United States or Asian countries and compensate for possible losses.”

COST: Economy Minister Rogelio Velasco seeks ‘tranquility’

On average businesses in Andalucia export €2 to the UK market for every €1 invested in goods from British companies.

Meanwhile, expats made up up a fifth of all foreign real estate buyers in 2017 with 2,643 homes purchased in Andalucia.

The UK also sees the most visitors to Andalucia , with more than three million travellers each year spending a total €1.8 billion.

The Junta has sought to calm fears with a  ‘message of tranquility’ to reassure citizens and companies that ‘contingency measures’ are in place

Velasco said: “People who work in Gibraltar will continue to go in and out daily without problems and the status of British residents on the Costa del Sol will not change.”

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