Ceuta Faces Severe Economic Challenges with High Unemployment and Low Growth
CECE highlights Ceuta's alarming economic weaknesses, including high unemployment and low growth rates.
Key Points
- • Ceuta's GDP growth for 2023 is 1.7%, the lowest in Spain.
- • Unemployment stands at 23.74%, affecting women over 30 in services most.
- • 44.3% of GDP relies on the public sector, showcasing economic dependence.
- • CECE is urging for local business collaboration and strategic economic initiatives.
The Confederación de Empresarios de Ceuta (CECE) has released a stark report highlighting persistent economic weaknesses within Ceuta's economy. For 2023, Ceuta recorded the lowest GDP growth in Spain at merely 1.7%, well below the national average of 2.7%. This sluggish growth reflects deeply entrenched structural issues that the region has faced over the past decade.
A significant concern is the GDP per capita in Ceuta, standing at 22,751 euros, which is 26.5% lower than the national average. This financial metric underscores limited purchasing power among residents, exacerbated by an unemployment rate of 23.74%, double that of the national figure. Women over 30 working in the service sector are particularly impacted, highlighting a demographic increasingly vulnerable to economic downturns.
Moreover, a staggering 44.3% of Ceuta's GDP stems from public administration, healthcare, and education, indicating a heavy reliance on the public sector and a lack of industrial diversification—the contributions from industry and technology are a mere 1.5% and 1%, respectively. The inflation rate also sits above the national average at 2.6%, hitting sectors like hospitality hard.
Recent trends show negative dynamics in job creation; 407 jobs vanished in the last quarter alone and self-employed numbers plummeted by 10.5% over six years. In addition, Ceuta’s trade balance is in the red with a deficit of 247.7 million euros, despite a surprising 66% increase in exports, which raises questions about local production capabilities.
To address these critical issues, CECE is advocating for enhanced collaboration among local businesses and institutions, and they are taking their concerns to Brussels to campaign for initiatives that could spur economic revitalization. The need for a strategic focus on competitiveness, diversification, and sustainable growth has never been more urgent for Ceuta as it navigates these structural economic challenges.