Spain | Extremadura Economic Outlook 2024

Summary

Extremadura's GDP could increase by 2.0% in 2024 and 2.7% in 2025. This will create more than 15,000 jobs in the two-year period and reduce the unemployment rate to 14.9% in 2025.

Key points

• Key points:
• GDP growth in 2024 is expected to be 2.0% (2.9% in Spain). Membership is growing less than in the rest of the Spanish economy, partly due to the lower weight of service exports and a lower contribution to employment from trade and hospitality. Added to this is the decline in agricultural membership, which still discounts the effects of the drought of previous years.
• Towards 2025, growth could accelerate to 2.7% (2.4% in Spain). The normalization of production in the countryside should allow for a greater boost in agricultural GVA. Industrial production of energy goods is growing at high rates, thanks to the push from hydropower, and food exports are already showing signs of recovery.
• It is necessary to advance policies that encourage investment, generate certainty and alleviate the lack of human capital. The weakness in the growth of the working population, the provision of housing, services to households and employment opportunities to improve the quality of life are challenges facing the Extremadura economy.
• If these forecasts are met, in 2025 the GDP per capita would exceed the pre-crisis level by 4.4 percentage points, almost two points above the growth that would be observed in the same period in Spain as a whole. In addition, the unemployment rate will be reduced to 14.9% on average in 2025 and 15,400 new jobs could be created in 2024 and 2025.

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