Andalusia’s economic performance in recent years has become a significant factor for all of Spain. The region has not only increased the number of new businesses, but has also achieved a substantial reduction in unemployment. These changes are already impacting the labor market, the investment climate, and the prospects for development in the south of the country.
According to RUSSPAIN, Andalusia now accounts for 80% of all new companies in Spain. This means that eight out of ten new businesses are registered here. In recent years, the unemployment rate in the region has dropped by 30%, with the total number of unemployed reaching 588,474 in February 2026—this is the second lowest figure in the past 18 years. For the first time, the number of self-employed has exceeded the number of unemployed: in February, there were 591,000 autónomos registered.
Growth in exports and investment
Andalusia’s export figures have also reached a historic high: for the first time, export volumes exceeded 40 billion euros. The inflow of foreign investment has doubled over the past five years, confirming the interest of international companies in the region. Authorities note that these achievements were made possible by modernizing industry and developing new technologies.
Special attention is being given to renewable energy sources and green hydrogen production projects. It is expected that this sector will create 10,000 new jobs by 2030. In addition, Andalucía is actively developing its aerospace sector, cybersecurity, and defense industry. The region aims to become fully digital by 2030, with €2.6 billion already allocated for investment.
Infrastructure and housing
€4.66 billion has been invested in transport infrastructure—more than double the amount by the previous administration. Andalucía leads in housing construction, tramline development, and road network expansion. However, despite progress at the regional level, the authorities criticize the central government for not launching new suburban and intercity rail lines over the past eight years.
A delay in launching the direct high-speed train between Málaga and Madrid, which will not be ready by Easter, is expected to result in losses of more than €300 million. Regional authorities emphasize that such infrastructure issues are holding back further economic growth.
Demands to Madrid
To achieve the status of the country’s leading economy, Andalusia is calling on the central government to improve rail connections, modernize power grids, and increase investment in water management projects. Amid drought conditions, these measures are critical for the region’s sustainable development. Authorities are also discussing the need to revise the system of autonomous community financing to better reflect the interests of Andalusia and other regions.
Regional authorities stress that Andalusia has become more resilient and less dependent on external factors. The region plans to continue its independent economic policy, strengthening its influence not only in Spain but also at the European level. Ahead of elections, officials are focusing on further consolidating the region’s position.
Context and comparisons
In recent years, Spain has seen the growth of regional economies, posing new challenges to national policy. For example, in Catalonia, political tensions around the budget and long-term strategies also affect the economic situation, as discussed in the article about local government plans for Catalonia’s development amid the crisis. Such processes intensify competition between regions and push for state-level reforms.
Andalusia’s economic successes reflect a broader trend toward decentralization and the search for new growth models. In recent years, Spain’s regions have increasingly become drivers of change, offering their own solutions to attract investment and create jobs. These shifts are shaping new priorities for the country as a whole and affecting the allocation of resources among the autonomous communities.
