2015 Update on Economic Impact Study and Analysis of the Economies of Gibraltar and the Campo de Gibraltar Demonstrates the Overriding Benefits Derived from the Interaction between both Economies

The economies of Gibraltar and Spain are linked not only physically but also through the varied transactions which take place every day between businesses and individuals based in these economies. It is clear that economic flows go both ways and the purpose of the Gibraltar Chamber of Commerce's research study, which is an update of a study undertaken in 2009, is to analyse the scale and nature of these flows with a view to ascertaining the net recurrent effect in the current economic climate.

This updated economic impact study demonstrates the importance of the interaction between the economies of Gibraltar and Spain in general, and for the Campo de Gibraltar region in particular. Notably, in the context of the economic crisis which has occurred since the previous Chamber study was undertaken, the resilience of the Gibraltar economy stands out in stark contrast to the issues which have been encountered on the other side of the frontier where unemployment has risen sharply and property prices have plummeted.

The analyses provided in the report have been compiled by the same core team that undertook the first study in 2009, namely: Professor John Fletcher of Bournemouth University, who has extensive experience constructing economic impact studies for governments and international agencies around the world; and Dr Yeganeh Morakabati and Ken Male, both of whom are highly experience researchers, well-acquainted with the unique aspects of Gibraltar's economy.

Below is a breakdown of the Chamber's own executive summary of the report. The findings demonstrate the overriding benefits that are derived from the interaction of the two economies.

THE CHAMBER'S EXECUTIVE SUMMARY:

  • The Gibraltar economy has a significant and positive economic impact on the Campo de Gibraltar region when considered from the point of view of net recurrent expenditure.
  • In 2013 Gibraltar businesses imported almost £381M of goods and services from Spain (including net petroleum imports).
  • The number of jobs supported by the Gibraltar economy (within Gibraltar) is equivalent to 24% of the total (25,907/ 109,189) permanent jobs recorded in the Campo region in 2013.
  • Spanish Frontier workers earned more than £102M in 2013 and over £65M of this money was spent in the Andalucía region, thereby generating further rounds of economic activity.
  • Other Frontier workers (excluding Spanish and Gibraltarian) earned £105M from within the economy of Gibraltar, of which they repatriated 20% and spent the remaining £84M in Spain, almost £54M of this in the Andalucía region.
  • Residents of Gibraltar spent almost £73M on shopping, food and other goods and services in Andalucía during 2013 of which £46M was within the Campo de Gibraltar.
  • Gibraltarians with second homes in the Campo de Gibraltar spent more than £62M in the Spanish economy during 2013 of which more than £40M was within the Campo de Gibraltar.
  • Gibraltar's economy increased the level of output in the Campo de Gibraltar in 2013 by £554M.
  • Total visitor spending in Gibraltar in 2013 was £207M of which £161M was by visitors across the land frontier and of this £146M was attributable to Campo de Gibraltar residents.
  • Employment in the Campo fell from 102,468 in 2007 to 83,282 in 2013. With frontier workers estimated to be 9,424 the direct effect of Gibraltar on employment in the Campo de Gibraltar is estimated to be just over 11%.

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