Fuerteventura ranks lowest in business confidence in the Canary Islands

The lack of qualified personnel, the “main obstacle” for the development of more than half of Canary businesses

The results of the Canary Islands Business Confidence Index (ICE) for the first quarter of 2026, compiled by the Official Chamber of Commerce of Santa Cruz de Tenerife, confirm that the shortage of qualified staff is the principal limitation for the growth of Canary companies.

“For the second consecutive year, more than half (52.1 %) of the archipelago’s firms have indicated that the lack of professionals is the main ‘obstacle’ to boosting their activity,” said Santiago Sesé, president of the provincial Chamber, in a press release.

The ICE rose by 0.4 % in the first three months of the year, reflecting a moderate increase that is approaching the national average growth of 0.1 %.

“The Canary Islands start the year with stability, a productive fabric that maintains a good economic tone and activity that grows moderately but steadily across most sectors,” Sesé explained.

According to the Chamber, the indicator’s evolution shows that recent economic growth has created a range of opportunities that the Canary Islands are not fully exploiting, potentially hampering development in terms of employment, investment, and social progress.

Sesé also highlighted talent retention as a key issue:

“We understand there is no immediate solution, but we need a set of improvements such as more effective active‑employment policies that adapt to the real needs of companies and include continuous evaluation.”

He added that it is essential to reduce rising levels of labor absenteeism.

“This demand does not mean blaming the vast majority of workers who sustain companies and society with their daily effort,” Sesé clarified. “All economic agents and public administrations must clearly differentiate between unjustified absences and temporary disability leaves.”

Business Dynamics

In the investment chapter, the Chamber president described the business climate as prudent rather than retreating. However, the gap between firms cutting investment and those expanding it is much narrower than in previous years, as Canary companies trust the future provided suitable investment conditions exist.

He also defended the Chamber’s support for the Canary Government’s stance against a unilateral negotiation by the Ministry of Finance, stating that a balanced and fair financing system should never become a political weapon.

General Director Lola Pérez noted that the islands rank seventh in ICE growth, trailing the Region of Murcia, which leads with 2.4 %, yet still 0.3 percentage points above the average confidence growth of Spanish companies (0.1 %).

“The scenario is moderate compared with the three years following the intense post‑pandemic recovery,” Pérez said.

• 63.7 % of firms intend to maintain activity throughout January–March.
• Optimistic entities outnumber pessimistic ones: 22.6 % expect improved dynamics versus 13.7 % anticipating a decline.

For Q4 2025, 30.8 % of companies improved their figures, yielding a positive balance of 18 points between favorable and unfavorable responses (12.9 %).

“This is the highest among all regions,” Pérez asserted.

The remaining 56.3 % kept their activity level steady, reflecting the economic boost during the 2025 year‑end, driven by Christmas consumption and strong tourism performance.

Fuerteventura at the Bottom of the Business Confidence Index

Business confidence varies markedly across the islands. While La Gomera (12.6 %), Gran Canaria (2.4 %), Tenerife (0.6 %), and Lanzarote (0.2 %) recorded ICE gains at the start of 2026, La Palma (‑2.2 %), El Hierro (‑4.4 %), and Fuerteventura (‑5.5 %) fell to the bottom, with Fuerteventura showing the sharpest decline.

La Gomera not only led early‑year optimism but also topped the archipelago’s overall balance with a 35.9 % advantage over other islands, followed by Lanzarote (28.3 %) and Gran Canaria (18 %). All islands displayed a positive trend overall.

“La Palma was the most lagging, with 9.6 points less than Tenerife (15.6 %),” Pérez noted.

Regarding business expectations, only El Hierro and La Palma showed declines (‑3.2 %), while the rest of the Canary Islands maintained positive balances, with La Gomera improving its expectations by 28.2 % for Q1 2026.

The main constraints on Canary companies, after the shortage of personnel, are:

• 44.9 % cite increased competition, indicating heightened activity.
• 40.3 % point to weak demand, partly pressured by accumulated inflationary tension.

These factors rank second and third, respectively, in limiting business activity across the archipelago.