Spain | Galicia converges

Summary

In 2025, the Galician economy could report a 6.4% increase in GDP per capita when compared with 2019, the largest advance within Spain. This brings the autonomous region one step closer to converge with the country as a whole.

Key points

• Key points:
• Over the last 30 years, the increase in GDP per capita in Galicia has been 50% greater than the level observed across the country.
• The growing weight of age groups where the participation in the labor market is low has been limiting worker availability. At the extreme, the increasing number of retirees is impeding employment growth. Meanwhile, immigration has not been as intense as in other regions of Spain.
• Moreover, the greater weight of industry has meant that employment rates do not fluctuate as much as in other autonomous regions of Spain and, consequently, not as many jobs are destroyed in times of recession.
• Lastly, it is noteworthy that labor productivity growth has been double that of Spain as a whole since 1993, a situation that has persisted in the post-pandemic period.
• Moving forward, attracting talent remains a key concern for the Galician economy, especially in high value-added services and industry.

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