A “relevant boost” to agriculture after a “better” harvest than the average of the last decade and an industry and exports that continue to “rise” after an already “very positive” year 2023 mark a new growth of the economy of Castilla y León in the second quarter. Specifically, 3.6 percent in interannual terms and 0.2 if compared to the figures at the end of March.
The gross domestic product (GDP) of Castilla y León has experienced the “strongest growth” of the last five quarters and It is higher than the national average (2.9%), European average (0.8%) and the Eurozone average (0.6%).as highlighted this Tuesday by the Minister of Economy and Finance, Carlos Fernández Carriedo, during the presentation of the regional accounting.
The first half-year results “significantly exceed expectations” for growth, which had been set at 1.7% for 2024. The reason for this is that the aforementioned sectors with a more positive development are behaving “better than expected”. In the case of primary, the increase (10.8%) points more to the agricultural aspect and even if it were to leave behind two years of losses, it is in the hands of the harvest. Regarding the industry, the Council estimates that it “reached its ceiling” in 2023, but it was “favorably surprised that we have become overgrown.” More precisely, 5.2 percent.
Compared to the rest of the sectors, positive data, although more moderate, are also recorded. services They achieved a “good performance” with an increase of 3.1%, particularly in the transport and hotel sectors; and the construction It also increased, up to 1.8%, while in previous years it was one of the most remarkable. The reason: the evolution of interest rates and consequently of mortgage loans, which in the third quarter should change trend and could lay the foundations for a more favorable scenario, Carriedo said.
In terms of demand, there is a greater contribution to GDP growth, “very balanced” between household and government spending and gross capital formation, with a “very relevant contribution of the external balance”, which continues to grow –Last year, Castilla y León was the community with the highest increase–, with a growth of 2.2%.
The challenge: stabilizing the figures
After the increase in the first two quarters of the year (in the first quarter it was 3%), the forecasts are promising and “the forecasts will almost certainly be exceeded.” AND By 2025, the “challenge” is to “stabilize these high figures.”stressed the adviser. “We will continue to grow but at a lower percentage,” he added, without wanting to go into other figures and waiting to finalize the forecasts for next year’s economic scenario in mid-October, when the spending ceiling and budgets are presented.
