The CREA Project (Economic Growth and Employment in Andalusia), an initiative promoted by Unicaja, in collaboration with the Regional Government of Andalusia, through the Regional Ministry of Employment, Enterprise and Self-Employment; the Growth Lab at Harvard University, and the consulting firm Oliver Wyman, has presented the results of its analysis, focusing on four key areas: making a diagnosis of regional growth, identifying products and services with development potential in the different provinces, calculating the financing and investment needs of companies to facilitate their transformation and diversification, and proposing public policies that promote sustainable growth.
To this end, three reports have been prepared, laying the foundations for specific actions and future studies on the Autonomous Community of Andalusia. The first, entitled ‘Potenciando capacidades productivas para un crecimiento sostenible en Andalucía’ ('Enhancing productive capacities for sustainable growth in Andalusia') and developed by the Growth Lab, by applying the methodology of economic complexity, identifies the most attractive growth opportunities in Andalusia, in general, and each of its provinces, in particular, with a focus on the industrial sector. The second, entitled ‘¿Cuánto le cuesta crecer a Andalucía? Necesidades financieras presentes y futuras de las empresas andaluzas’ ('How much does it cost Andalusia to grow? Present and future financial needs of Andalusian companies') and carried out by Oliver Wyman, analyzes the financial needs of Andalusian companies by sector, province and size, which is essential to achieve the objectives of growth and economic diversification. Finally, the third document, ‘¿Cómo crecer de manera sostenible? Selección de potenciales políticas públicas para que Andalucía crezca más y cree empleo de calidad’, ('How to grow sustainably? A selection of potential public policies for Andalusia to grow more and create quality employment'), also prepared by Oliver Wyman on the basis of its experience advising institutions in different countries, offers public policy guidelines and a wide range of measures that could be implemented to achieve this growth.
Differential capabilities for transforming the economy and generating quality jobs
In a global context marked by technological and energy transitions and the challenges of globalization, the region stands out for its unique attributes. These include: its abundant natural resources, which consolidate it as an agricultural and mining power, as well as a center for the development of renewable energies; its exceptional historical and cultural heritage, combined with a privileged climate, which position it as an attractive tourist destination; its strategic logistical location, given its connections with Africa, the Americas and the rest of Europe; and its institutional stability, which contributes to investment and location decisions in an environment of greater certainty. These assets place the Community in a preeminent position to overcome its main challenge: to advance in real convergence with Spain and Europe as a whole, creating wealth and quality employment.
To achieve this convergence, Andalusia must increase its growth, raising its employment and productivity levels, based on the growth of exports and the attraction of investments that will boost the diversification of the economy towards sectors with higher productivity and added value. In this sense, a strategy is proposed based on strengthening competitive industries in the region, such as agriculture and tourism, as well as promoting new and growing industries, such as the production of chemical products and components for the naval and aerospace industries. In addition, it is suggested to take advantage of the productive capacities that the solar and wind potential offers to produce goods and services necessary for decarbonization and to attract energy-intensive industries.
More than 130 growth opportunities
Using the economic complexity methodology, the Growth Lab has identified more than 130 growth opportunities in specific products and services that can increase Andalusia's complexity and productivity. This theory holds that economic development involves a progressive accumulation of productive capabilities and specialized knowledge, and that future diversification tends to occur around products that require similar capabilities to those that already exist.
The growth opportunities identified in the CREA Project should be considered as a guideline that requires continuous monitoring and evaluation by the authorities, in constant dialogue with the private sector, adapting to the changing dynamics of the regional and global economy.
Opportunities in Andalusia extend to several key industries, such as agri-food, which produces goods of animal and vegetable origin, and metallurgy, focused on iron and steel parts. In addition, growing potential is seen in machinery and equipment, electrical materials, and the chemical industry in Cadiz, as well as in the naval and aerospace sectors in Seville and Malaga, which offer significant opportunities. On the other hand, digital services and tourism present possibilities for expansion and diversification.
Andalusia should take advantage of the energy transition as a strategic advantage, using its solar and wind potential to attract energy-intensive industries and transform its knowledge in green sectors into an exportable service. Public policies that promote collaboration between universities and the private sector are suggested, along with tax incentives and specific funding to boost innovation and patent development.
Thus, it is estimated that, if the proposed public policies and actions materialize, Andalusia could generate more than 500,000 quality jobs, new or reconversion of existing ones, in industries with higher value-added products and services, which would represent a significant increase in productivity, wealth and the level of economic welfare of the region.
Additional financing for sustainable economic growth
According to Oliver Wyman estimates, Andalusian companies require more than 30,000 million euros in financing to operate. If Andalusia implements diversification policies and achieves a leading position in the identified products and services, this need could increase to approximately 38,000 million euros, with a greater focus on industrial and intensive sectors. It is therefore crucial to develop strategic investment plans and financial needs in collaboration between the public and private sector, ensuring the necessary infrastructure and environment to attract job-creating investments. To capitalize on growth opportunities in Andalusia, it is crucial to address current challenges through specific measures in five key areas.
First, the development and attraction of human capital is essential, given the mismatch between the skills required by the productive sector and the labor supply. Incentives are proposed to encourage labor mobility and dual training, as well as closer collaboration between companies and the education system.
Next, it is necessary to improve the response in urban development and infrastructure, especially in residential supply. Measures such as the reuse of offices as housing and the creation of metropolitan areas to facilitate sustainable urban expansion are suggested.
Third, the expansion of the financial services ecosystem is essential to support SMEs and the self-employed in their investment projects, promoting financial education and the creation of government guarantees to facilitate access to financing.
Efficient water management is another priority, as scarcity can limit the competitiveness of industries. Improvements in infrastructure and a tariff scheme that reflects real costs are proposed.
Finally, coordination between the public and private sectors is vital to attract investment, minimizing bureaucracy and improving response times. To this end, the creation of sectoral roundtables and the expansion of the Project Accelerator Unit (UAP), under the Andalusian Government, are suggested to facilitate collaboration and channeling of strategic investments.
In conclusion, despite the challenges identified, Andalusia presents itself as a region with great opportunities and a good starting position to advance towards achieving sustained and sustainable economic growth. Its natural resources, productive capacities, human talent, strategic position and institutional stability offer a solid base for promoting a more diversified and productive economy.
With the implementation of appropriate policies and effective collaboration between the public and private sectors, the region can generate thousands of quality jobs and strengthen its capacity to compete in key sectors, thus laying the foundations for long-term sustainable economic development and consolidating its position as a benchmark for sustainability, innovation and quality employment.
"At Unicaja we do not contemplate the performance of our function without incorporating into the equation the contribution to the development of the territories that make up our areas of action, in which Andalusia undoubtedly occupies a key position. This is the context of our participation in the CREA Project, which has sought to identify the capabilities of the autonomous community of Andalusia to take advantage of its potential and improve its competitive position in the complex European and world map of regions," said Isidro Rubiales, CEO of Unicaja.
"The CREA Project is an example of the firm commitment of the different actors in society to sustainable growth and job creation; the challenges identified are great but after a detailed analysis we can say that Andalusia has the capabilities and potential to overcome them and lead the transformation and productive diversification that Spain and Europe need," explained Gonzalo Arana, CREA project director and head of Oliver Wyman's Government and Public Institutions practice for Spain and Portugal.
About Unicaja
Unicaja is one of the main banks in the Spanish financial system and a listed company in the Ibex 35, with a solid base of four million customers. In fact, it is a main player in six autonomous communities, its regions of origin (Andalusia, Asturias, Cantabria, Castilla-La Mancha, Castilla y León and Extremadura), in addition to being present in other markets such as Madrid, Ceuta and Melilla, where it maintains a traditional presence.
It is characterized by its universal banking model and sustainable business model focused on retail business, under a prudent management of its commercial strategy and risk profile, socially responsible, which places quality, innovation and digital transformation as a priority, and incorporates technology to improve customer service and the efficiency of the entity.
About Oliver Wyman
Oliver Wyman is a strategic consulting firm specializing, among other sectors, in advising the public sector and financial institutions. It has more than 7,000 professionals in more than 70 offices around the world. With more than 20 years of presence in Spain and 40 years in Europe, Oliver Wyman has participated in hundreds of projects that generate a positive impact on clients, institutions and governments with which it collaborates, using the knowledge and experience of its experts from different practices and departments. Oliver Wyman works to help create meaningful and measurable changes that benefit the societies in which it operates
Oliver Wyman is a subsidiary of Marsh & McLennan Companies, listed on the New York Stock Exchange NYSE: MMC. For more information visit www.oliverwyman.com or follow us on X
About the Regional Ministry of Employment, Enterprise and Self-Employment
The Regional Ministry of Employment, Enterprise and Self-Employment of the Regional Government of Andalusia, in accordance with the provisions of the Decree of the President 10/2022, of July 25, has been assigned the autonomous competences of coordination and promotion of the Andalusian Employment Service, with special attention to labor guidance and intermediation; as well as labor relations, both individual and collective; prevention of labor risks, health and safety at work; the policies favoring equal treatment and opportunities in the labor field; the functional competences over the Inspection of Labor and Social Security in employment matters; vocational training for employment; the promotion and encouragement of self-employment; the social economy; the promotion of the capacities of the Andalusian companies and the incentive policies for employment; and the competences related to trade and craftsmanship.
In addition, the Andalusian Employment Service's Permanent Prospection System of the Andalusian Labor Market (Argos Observatory) is analyzes and studies the behavior of the labor market in Andalusia.
About the Harvard University Growth Lab
The Growth Lab is a research group at Harvard University based at the John F. Kennedy School of Government (HKS). It is a leader in developing knowledge about economic growth and the policies that can help foster sustainable and inclusive growth processes. It has a multidisciplinary team of more than 40 faculty, researchers and associates, and is led by Professor Ricardo Hausmann.
In addition to its academic research, the GL conducts collaborative research activities with local stakeholders to understand the particularities of growth processes in each context, identify and address key constraints to growth, and help catalyze productive opportunities. For more information: https://growthlab.hks.harvard.edu/ or follow us on X @HarvardGrwthLab.
About Analistas Económicos de Andalucía
Analistas Económicos de Andalucía, a research company of the Unicaja Group, aims to promote and develop socioeconomic research. Through studies, analysis and activities, it aims to promote a better understanding of the reality of the Andalusian autonomous community and its evolution in the national and international context.
