Spain | Galicia Economic Outlook 2023

Summary

Galicia's GDP increased by 4.1% in 2022. We expect an increase of 0.7% in 2023 and 3.4% in 2024, which will allow the creation of 17 thousand jobs in the biennium.

Key points

• Key points:
• The most recent information forces to revise the 2022 growth to 4.1% in Galicia and 5.3% in Spain. However, a lower dynamism is observed in the second half of the year, and therefore, the forecast for 2023 is for a slowdown in the increase of Galicia's GDP to 0.7% in 2023.
• The entry into recession in the Eurozone and the exhaustion of the recovery in tourism will make a negative contribution to the growth of external demand in 2023 and 2024. Household spending will be affected by rising prices, increased uncertainty, slowing employment and rising interest rates.
• Activity will gain traction as NGEU funds are executed and uncertainties affecting households and businesses fade, and this will boost Galicia's GDP growth in 2024 to 3.4%. By 2024, 17,000 new jobs could be created in the region.
• The correction of inflation will continue, and there seem to be no problems in gas supply. Companies and households are better prepared to face a more volatile environment. No imbalances in economic sectors are observed.

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