By Professor
John Fletcher
of Bournemouth
University

Produced for the Gibraltar Chamber of Commerce

Version Espanol

Executive Summary

  1. 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.
  2. In 2007 Gibraltar businesses imported more than 174m of goods and services from Spain (excluding petroleum imports).
  3. 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.
  4. Other frontier workers (excluding Spanish and Gibraltarian) earned 82.8m from within the economy of Gibraltar.
  5. 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.
  6. Residents of Gibraltar spent almost 30m on shopping, food and other goods and services, in Spain, during 2007.
  7. Gibraltarians with second homes in the Campo de Gibraltar spent more than 33.5m in the Spanish economy during 2007.
  8. 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).
  9. 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.
  10. 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.
  11. The Gibraltar economy was responsible for approximately 12.2% of the total GDP in the Campo de Gibraltar in 2007.
  12. 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.
  13. 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].
  14. The full report is available from the Gibraltar Chamber of Commerce

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