Spain | Comunitat Valenciana Economic Outlook. First Half 2026

Summary

The Valencian Community maintains high growth but faces a slowdown due to less momentum in services (both tourism and other sectors) and the gradual exhaustion of support measures following the DANA.

Key points

• Key points:
• GDP grew strongly (3.2% in 2025) and could maintain a 3.0% growth rate in 2026. For 2027, a slowdown to 2.2% is expected. The economy remains more dynamic than the average, supported by services and the strong performance of construction due to post-DANA measures.
• Tourism shows signs of weakness: foreign spending and overnight stays are moderating their growth, although they continue to grow significantly. On the other hand, spending by residents is rebounding.
• Greater reliance on domestic demand, with consumption sustaining growth. Improved wages and financial conditions are driving household spending, partially offsetting the lower external contribution.
• Employment continues to grow at high rates, driven by immigration, construction, and both public and private services. Social Security affiliation is particularly strong in the Valencia area and non-capital urban zones.
• Structural bottlenecks persist: housing, energy, and tourism capacity. The housing deficit, tourism capacity limits, and energy investment needs are conditioning future growth.

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