Valencian AC

The Valencian economy is performing at a similar level to that of the country as a whole. We estimate that Valencia’s GDP grew by 3.0% in 2024 (3.2% in Spain), somewhat lower than originally anticipated due to the impact of the DANA floods, which may have reduced growth by 2 or 3 tenths of a percentage point. Our forecasts indicate GDP growth of 2.3% in 2025, slightly below the national average (2.5%).

Content available in
March 25th, 2025
Comunitat Valenciana
5,410,000
inhabitants (2024)
€26,453
of GDP per capita (2023)
9.3%
of Spanish GDP (2023)
2.3%
anticipated growth in GDP (2025)
Regional economic structure and position
  • The Valencian Autonomous Community is the region with the fourth highest GDP, accounting for 9.3% of Spain’s total GDP.
  • With a little over 5.4 million inhabitants, 10.9% of the national total, it  is the region with the fourth largest population.
  • GDP per capita (26,453 euros) is 14.6% below the average. Its relative decline over recent years is due to lower economic growth against a backdrop of higher population growth.
  • In terms of its sectoral composition, the region is notable for the relative importance of manufactured goods (14.5% vs. 11.9% on average) and construction (6.7% vs. 5.9%). However, industry-related services are of lesser importance (27.2% vs. 29.7%), as is agriculture (1.9% vs. 2.7%).
  • The region is highly export-oriented: exports of goods account for  27.3% of GDP (25.6% on average in Spain). The region is the fourth largest exporter, with 36.978 billion euros in 2024, 9.6% of all Spanish exports. The main products exported are food (23.9% of the total), above all fruit and pulses, chemical products (13.5%) and products from the motor vehicle industry (13.1%); it accounts for 48% of Spanish exports of construction materials, 31% of footwear and 24% of fruit and pulses. In turn, although tourism activities contribute a high share of GDP, it is less dependent on international tourism than the rest of Spain: in 2024, 54.9% of overnight stays in hotels were by foreign tourists (vs. 63.8%).

Table of structural indicators

 

  

1993

2003

2013

 

2023

GDP per capita

Euros

 

9,788

17,855

19,137

 

26,453

100 = Spain

 

97.3

93.9

86.9

 

85.4

Population

Thousands of inhabitants

 

3,942

4,442

4,960

 

5,319

Average annual growth over the decade (%)

 

0.6

1.2

1.1

 

0.7

% of total in Spain

 

10.0

10.4

10.7

 

10.9

% of population > 65 years old

 

14.3

16.2

18.1

 

20.2

Exports of goods as a proportion of GDP

%

 

21.4

24.8

 

27.3

 

 
Macroeconomic situation

The Valencian economy is performing at a similar level to that of the country as a whole. At CaixaBank Research we estimate that Valencia’s GDP grew by 3.0% in 2024 (3.2% in Spain), somewhat lower than originally anticipated due to the impact of the DANA floods, which may have reduced growth by 2 or 3 tenths of a percentage point. Activity was driven by construction and, above all, tourism, which, in turn, boosted consumption, explaining the strength of the labour market.

Our forecasts indicate GDP growth of 2.3% in 2025, slightly below the national average (2.5%). This loss of momentum is due to the rate of growth of tourism returning to normal and foreign demand being constrained by modest growth in the euro area. In the short term, growth will be hit by the DANA floods, but the investment effort to rebuild and replace the capital that was destroyed supported by EU funds will boost growth. Furthermore, the improved financing conditions and easing inflation will continue to support private consumption.

GDP

Last actualization: 25 March 2025 - 14:00

Employment is performing well, somewhat better than across the country, with a 2.6% rise in the number of workers affiliated to Social Security in 2024 (2.4% in Spain) and a 2.7% year-on-year rise in February of this year (vs. 2.4%): hotels and restaurants, transportation and healthcare have seen the biggest rises in employment over the last year, while there have been job losses in the public sector. In any event, Valencia has one of the highest unemployment rates in the country, 12.3% in Q4 2024, compared to an average of 10.6%.

Consumption is performing better than in Spain as a whole. The volume of sales of retail and consumer goods rose by 2.6% in 2024, bettering the figures for the whole of Spain (2.1%). Meanwhile, it has the highest number of passenger car registrations in the country, with growth of 15.1% in 2024 and an extraordinary 70.0% year-on-year growth in January-February 2025, due to the need to replace the many vehicles destroyed by the DANA floods.

However, industrial production is performing worse than it is in Spain as a whole: in 2024 the IPI fell for the second consecutive year, by 2.8% (0.7% on average for the country), hit by poorly performing consumer durables and, above all, capital goods.

In line with this downturn in industry, exports of goods are also performing poorly and have been declining for two years now. In 2024, they fell by 2.7%, (0.2% on average nationwide), hit by falling sales of capital goods – especially transport equipment – and products from the motor vehicle industry, which could not be offset by the upturn in food (fruit and pulses) and energy products, whose sales partly recovered after the sharp downturn in the previous year (the regasification plant in Sagunto was adversely affected by prices returning to normal levels).

Tourism activities are suffering from the effects of the DANA floods and their post-pandemic recovery has faltered. In January, total overnight stays rose by just 0.3% year-on-year (3.0% in Spain) and it is the only major tourist region where the inflow of foreign tourists fell (–2.6% vs. 6.1% in Spain).

Industrial production

Last actualization: 25 March 2025 - 14:00

Tourist overnight stays

Last actualization: 25 March 2025 - 14:05

Table of indicators

 

 

2014-2019 average

2020

2021

2022

2023

2024

2025

Latest figure

Activity and prices

Real GDP *
(% year-on-year change)

2.8

–10.5

7.6

5.5

2.3

3.0

 

2024

2.8

–10.9

6.7

6.2

2.7

3.2

 

Retail trade
(% cumulative annual change)

2.7

–4.5

4.0

1.8

3.4

2.6

––

December–24

2.3

–5.2

3.6

0.8

2.9

2.1

––

Industrial production index
(% cumulative annual change)

2.4

–5.8

7.1

2.7

–6.5

–2.8

––

December–24

1.8

–9.2

7.1

2.3

–1.6

0.7

––

Service activity index
(% cumulative annual change)

5.1

–11.0

22.7

14.5

2.9

4.7

––

December–24

5.1

–15.6

22.0

18.3

2.2

3.0

––

Consumer price index
(% year-on-year change)

0.7

–0.4

3.3

8.5

3.5

2.8

3.1

January–25

0.7

–0.3

3.1

8.4

3.5

2.8

2.9

          

Labour market

Registered workers affiliated to Social Security
(% year-on-year change)

3.8

–1.5

3.2

4.7

2.8

2.6

2.7

February-25

3.2

–2.1

2.5

3.9

2.7

2.4

2.4

Registered workers affiliated to Social Security not affected by furlough
(% year-on-year change)

3.8

–8.2

8.0

8.0

3.3

2.8

2.4

February-25

3.2

–9.2

7.3

7.3

3.4

2.7

2.6

Unemployment rate
(% working population)

19.5

16.2

16.1

13.3

12.8

12.6

––

Q4 2024

18.8

15.5

14.9

13.0

12.2

11.3

––

Unemployment rate for under 25s
(% working population < 25)

43.6

36.6

37.4

28.5

28.6

25.7

––

Q4 2024

42.5

38.3

44.5

24.4

28.8

24.1

––

          

Public sector

Public deficit
(% of GDP)

–1.8

–1.1

–1.0

–2.9

-2.4

-0.7

––

Q3 2024

–0.9

–0.2

0.0

–1.1

–0.9

0.4

––

Autonomous Communities public debt
(% of GDP)

40.5

48.1

46.4

42.7

41.2

40.4

––

Q3 2024

23.9

26.9

25.3

23.1

21.7

21.3

––

          

Real estate market

Housing prices
(% year-on-year change)

3.3

2.2

4.3

7.2

4.0

8.8

––

Q3 2024

5.3

2.1

3.7

7.4

4.0

8.2

––

Housing sales
(% cumulative annual change)

10.2

–21.3

35.2

25.2

–4.3

9.0

––

December–24

9.7

–16.9

34.8

14.8

–10.2

10.0

––

          

Foreign sector and tourism

Exports of goods
(% cumulative annual change)

4.6

–7.1

11.3

22.2

–4.1

–2.7

––

December–24

3.9

–9.4

20.1

22.9

–1.4

0.2

––

Tourist overnight stays
(% cumulative annual change)

4.4

–63.4

71.7

55.5

6.3

3.0

0.3

January–25

3.0

–69.2

78.3

73.3

7.1

4.4

3.9

Note: *The 2024 GDP figure for Autonomous Communities is an estimate made by CaixaBank Research.

Source: CaixaBank Research, based on data from the National Statistics Institute (INE), the Bank of Spain, the Ministry of Labour, Migration and Social Security (MITRAMISS), the Ministry of Finance and DataComex.

Regional comparison

Below we show a series of charts comparing the main indicators for the various regions.

Regional comparison

Last actualization: 14 November 2024 - 08:30