Produced for the Gibraltar Chamber of Commerce
- 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 2007 Gibraltar businesses imported more than £174m of goods and
services from Spain (excluding petroleum imports).
- Spanish frontier workers earned almost 243m in 2007 and this
money was repatriated and spent in the Campo de Gibraltar region to
generate further rounds of economic activity.
- Other frontier workers (excluding Spanish and Gibraltarian) earned
£82.8m from within the economy of Gibraltar.
- The number of jobs supported by the Gibraltar economy (within
Gibraltar) is equivalent to 18% of the total 102,468 jobs recorded
in the Campo de Gibraltar region in 2007.
- Residents of Gibraltar spent almost £30m on shopping, food and
other goods and services, in Spain, during 2007.
- Gibraltarians with second homes in the Campo de Gibraltar spent
more than £33.5m in the Spanish economy during 2007.
- Gibraltar's economy increased the level of output in the Campo
de Gibraltar in 2007 by £301.745m. Total visitor spending in
Gibraltar in 2007 was £230.6m of which £176m was by visitors
across the land frontier. Of this £176m land frontier visitor
expenditure, some £112.4m was attributable to Campo de Gibraltar
residents and a further £21.27m is assumed to be displacement
from the Spanish economy, leaving a total net direct output
effect of £168m from recurrent spending (£302m-£134m).
- In 2007 the £302m direct output effect of the Gibraltar
economy on the Campo de Gibraltar economy was responsible
for a direct increase in Gross Domestic Product (GDP) within
the Campo de Gibraltar region of £195m.
- Using the Andalucia Regional Input-Output model to estimate
the secondary effects of the two economies' interaction, the
Gibraltar economy was responsible for a further increase in
GDP in the Campo de Gibraltar region of £125m, resulting in
a total increase in GDP of just over £420m.
- The Gibraltar economy was responsible for approximately
12.2% of the total GDP in the Campo de Gibraltar in 2007.
- In terms of a further wealth effect created by the Gibraltar
economy, the evidence would seem to suggest that property
values within the Campo de Gibraltar region have increased by
up to 40% because of the proximity to Gibraltar. With just
over 86,000 households in the region and using a conservative
property value (at 2007 prices) this could account for an increase
in Campo de Gibraltar asset values of somewhere between £1.4
to £5.4 billion. The reason for such large variation is
explained partly through the lack of data that are available
without undertaking a detailed survey and partly because of
the volatility experienced by the Spanish housing market
over the past year, where property prices, particularly in
some areas, have fallen dramatically. In part this fall
in property prices is explained by the general economic
downturn being experienced by the global economy and in
by the effect of the falling £ with respect to the value
of the euro which will have put further downward pressure
on property prices in the region.
- Gibraltar also imported approximately 1.5m tonnes of petroleum
products from the Campo de Gibraltar region for bunkering
during 2007 and the value of this has not been included in
the analyses. If the value of this fuel is included as an
import from the Campo de Gibraltar it adds almost another
£300m to the impact of Gibraltar on the region,
[using Meyrick and Associates of fuel bunker prices
for this period and a £ to US$ exchange rate of 0.5049
being the mid-point in 2007].
The full report is available from the Gibraltar Chamber of Commerce