Ineca warns that Alicante's economy "may suffer from its lack of drive" in the tariff war

Alicante's economy closed 2024 on a positive note despite declines in key indicators such as the sale of homes to resident foreigners and stagnant exports. It is precisely in foreign trade where Alicante's economy focuses after the White House's tariff announcements.

The new chapter in trade relations with the United States concerns the Institute of Economic Studies of the Province of Alicante (Ineca), which, while maintaining that 2024 was a positive year for Alicante's economy, urges to be "very attentive" to this situation.

This is highlighted in its Socioeconomic Situation Report for the province of Alicante corresponding to the fourth quarter of 2024, which represents the year's balance. After a 2024 in which Alicante improved in its main indicators, the report shows "weak progress in high value-added industrial and technological activities," one of the aspects Ineca has been emphasizing.

The president of the institute, Nacho Amirola, referred to Trump's tariffs and indicates that "this lack of drive in the provincial economy could make us suffer more in the face of geopolitical tensions such as those experienced in the current tariff war." With this, Amirola reiterated the need for "a strong and diversified productive activity" to cope with fluctuations, and calls for investment in industry and technology companies, beyond tourism and construction.

Amirola stated that "the constant decline in unemployment and the improvement in credits and deposits allow us to face 2025 in better positions, despite the decline in the sale of homes to resident foreigners and stagnant exports, something to be very attentive to."

In fact, exports "do not improve." Ineca explains that with Donald Trump's arrival at the White House "exports, imports, and tariffs have been the subject of countless analysis tables due to threats and actions aimed at imposing significant tariffs on almost all products that the US imports to increase domestic production and consumption." A situation that could penalize the growth of foreign trade, which remained the same as in 2023, since the United States is the sixth largest export country.

Going into more detail, the director of Studies at Ineca, Francisco Llopis, has stated that there are some advances in the social block "that are not yet reflected in economic activity." The new companies in 2024, about 6,426, do not cover the dissolution of companies, which unbalance the scale.

The coordinator of the Studies Committee, Quino Palací, pointed out that all sectors of activity improve their unemployment records compared to the values of a year ago. Thus, unemployment in agriculture decreases by 11.3% (with 474 fewer unemployed), industry reduces by 3.6% (-583 workers), construction decreases by -10.1% (-1,194 workers); and services fall by -3.0% (-2,756 registered workers).

One of the best sectors is finance, which records higher data than a year ago and deposits grow by 244 million euros compared to the previous quarter and 4,121 million euros more compared to December 2023, an 11.2% growth.

According to Llopis, Alicante consolidates the third national position in the amount of sales to resident foreigners behind Barcelona and Madrid with 1,356.3 million euros. Similarly, regarding real estate transactions, there were 13,747 transactions in the province of Alicante, maintaining the third position behind Madrid and Barcelona.

The director of Studies indicates that in the last quarter the province recorded an annual decline of 8.9% in the sale of homes to resident foreigners, while the whole of Spain, on the contrary, notes an increase of 10.3%.

This decline is supported by the tourism sector, which, despite remaining at the lower end of the contribution bases, continues to increase employment and traveller data, being the great engine of Alicante's economy, with an airport that breaks record after record.