The Galician economy moderated its pace of growth by increasing by 0.5% in the third quarter of this year, compared to the months of April to June, while the GDP of the community increased by 2.5% in the last 12 months, according to the “Coxuntura Socio-economic Report of the Galicia Economic Forum”.
This means that the Galician economy grew in the third quarter three tenths below the estimate across Spain as a whole and six tenths less than the Spanish average in interannual terms. The document highlights that external demand is the main engine of growth of the Galician economy.
More precisely, this parameter provides 2.4 points of growth in overall GDPwhich contrasts with what is happening in Spain, where external demand only contributes seven tenths and internal demand 2.4 points.
From the ‘Foro Economico’ it is indicated that “the weak internal demand of the Galician economy, which only contributes a tenth to the overall growth of GDP”, is the result of the contraction of family spending by 0.9%which had not happened since the first quarter of 2021, and a further contraction in investment (0.2%).
Exports increased 6% in the last 12 monthsalmost four points above what was estimated for imports. From a supply point of view, and taking into account the growth of large sectors throughout Spain, we see a contraction both the primary sector such as the manufacturing industrywith a drop of 2% and 1.3% respectively.
Added value
Despite everything, and among the “lights and remains” of the Galician economy, the Forum explains that the construction presents more dynamism than in the rest of Spainwith growth of 3%, half a point more than the state as a whole. This is different from what is happening in the services sector, where the added value generated in Galicia increases by 2.4%, compared to 3.7% in the Spanish economy.
In addition to “weak” manufacturing growth, the report also highlights due to its low relative productivitywhich represents 75.9% of the Spanish average for full-time jobs and 78.7% for hours worked.
Regarding the labor market, The report assures that the overall balance is “positive”, but that it presents “significant shadows”, since Galicia is one of the communities with the lowest activity and employment rates, as well as with the least dynamism in job creation.
Despite the 2.5% increase in GDP, one point more than expected the previous year, three of the four occupancy indicators They show growth rates significantly lower than those of the previous 12 months.
THE Social security affiliations They increased by 1.8% (a tenth more than the previous year). Furthermore, the employed population increases by only 0.3% compared to 2.5% in 2023. Thus, full-time equivalent jobs increase by 1% and by 0.2% for hours worked (2.1% and 2.7% the previous year). .
Although the labor force continues to grow, this increase is only occurring in the menreducing female employment, which has not happened since the first quarter of 2021.
