Spain | Galicia Economic Outlook 2024

Summary

Galicia's GDP could increase by 2.9% in 2024 and 2.5% in 2025. This will allow the creation of 27 thousand jobs in the biennium and reduce the unemployment rate to 8.7% in 2025.

Key points

• Key points:
• GDP growth in 2024 would stand at 2.9% (2.9% in Spain). This reflects more positive recent development than expected and improvements in the contributions of external and domestic demand to growth.
• The outlook for GDP deceleration towards 2025 is maintained, but growth will again be strong (2.5%) and will exceed that expected for Spain (2.4%). The labor market is beginning to show signs of deceleration, especially in non-urban areas and in the Vigo-Pontevedra area. Industry is not yet showing a significant improvement, weighed down by intermediate and energy goods. And there is uncertainty about the evolution of investment.
• It is necessary to advance in policies that encourage investment, generate certainty and alleviate the lack of human capital. The uncertainty faced by the automobile sector due to electrification , aging and the provision of affordable housing are among the challenges facing the Galician economy.
• If these forecasts are met, GDP per capita in 2025 would be 7.3 percentage points above the pre-crisis level, the largest increase among the communities. In addition, the unemployment rate will fall to 8.7% on average in 2025 and 27,000 new jobs could be created in 2024 and 2025 as a whole.

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