BBVA, in conjunction with APD, has highlighted the promising economic growth of the Canary Islands, projecting a 2.6% increase in GDP for 2024, higher than the national average, along with a significant reduction in unemployment rates.
At an event organized by the Association for the Progress of Management (APD) and BBVA, Quim Soler, the regional director of BBVA in the Canary Islands, emphasized the positive economic outlook for the region. According to the latest BBVA Research report, the Canary Islands’ GDP is expected to grow by 2.6% in 2024, outpacing the national growth rate. Additionally, the unemployment rate is forecasted to drop from 16% to 14.7%.
The conference aimed to provide private banking clients with insights and forecasts to make informed investment decisions. During the event, a round table discussion featured prominent figures such as Javier López, director of Private Banking at BBVA in the Canary Islands; Roberto Hernanz, head of BBVA Private Banking Markets in Spain; and Miguel Cardoso, chief economist for Spain at BBVA Research. The discussion was moderated by Pilar Valerio, director of APD Canarias and partner-director at PwC.
Roberto Hernanz noted that despite expectations of economic containment in 2023, there was surprising growth, leading to a robust start in 2024. He anticipated a “soft economic landing” for 2024, with positive performance in both fixed income and equities. In this scenario, he highlighted the value in fixed income, particularly in corporate bonds, while acknowledging that equities could continue to perform well if economic activity reaccelerates.
Miguel Cardoso pointed out that despite stagnation in Europe in 2023, the Canary Islands experienced strong employment growth. He attributed this to several factors, including stable energy prices, controlled inflation, positive tourist spending, and immigration, which have all contributed to a growth cycle. However, he cautioned that certain growth drivers, such as tourism, are reaching saturation points, and investment is not keeping pace with growth.
The discussion also touched on interest rate forecasts, with expectations of gradual reductions based on inflation trends. Other topics included geopolitical tensions, trade issues between Europe, China, and the US, and the impact of digitalization and Artificial Intelligence on the economy.
BBVA: ALMOST 2,500 CUSTOMERS
BBVA reported a successful year for its private banking segment in 2023, managing over 1.6 billion euros from nearly 2,500 clients in the Canary Islands. Javier López, director of Private Banking at BBVA, credited this success to the team’s expertise and dedication to providing quality financial advice. Looking ahead, he expressed optimism for continued growth and strong returns for clients in 2024.
The event concluded with a presentation by Juan Pedro Morenés from Allianz Global Investors on the transformative potential of Artificial Intelligence, deemed “the greatest business opportunity of the coming decades.”
