Spain | Galicia Economic Outlook

Galicia's economy will maintain solid growth in 2026–2027, supported by employment, consumption, exports and expansionary fiscal policy. The external environment will continue to affect industry and investment, while challenges related to productivity, housing and labor availability persist.

Key points

• Key points:
• Galicia's GDP is expected to grow by 2.3% in both 2026 and 2027, significantly outpacing the eurozone and Spain in 2027. Galicia is also projected to lead in GDP per capita growth since 2019, with an increase of nearly 14%. Around 47,000 jobs could be created between 2025 and 2027, bringing the unemployment rate down to 7.5%.
• Employment and private consumption remain buoyant. Social Security registrations continue to rise, driven by public services, professional activities and immigration. Spending with domestically issued cards increased by 8.3% y/y through September 2026, supported by improving employment and household income.
• Goods exports are recovering and international tourism is gaining momentum. Exports increased by 1.5% y/y through August 2026, while growth in spending with foreign-issued cards accelerated to 19.6% y/y between January and September, well above the increase recorded in Spain as a whole (+8.9%).
• Residential and productive investment, together with fiscal policy, will support economic activity. Around 6,000 homes are expected to be completed in 2026 and 6,300 in 2027, although housing supply will remain insufficient. Investment in productive capacity continues to show positive momentum, while higher public spending and tax incentives will support domestic demand.
• International uncertainty and supply constraints remain key challenges to the growth outlook. Sustaining growth will require improvements in productivity, faster investment and more efficient public services, against a backdrop of growing demographic and budgetary constraints.

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