Business · Economy · 4 hrs ago

Regional productivity gaps widened as employment differences narrowed

Regional productivity gaps widened as employment differences narrowed

Spain’s regional accounts show that regional GDP growth alone can give an incomplete picture of economic progress.

From 2019 to 2025, the economies of the Valencian Community and Galicia each grew by about 10% in real terms.

But GDP per person rose by less than 1% in Valencia and about 10% in Galicia, as their populations grew by 9.2% and 0.9%, respectively.

Across Spain’s 17 regions, productivity differences widened between 2000 and 2025, while differences in employment rates narrowed.

Employment and demographic changes partly offset the larger productivity gaps when GDP per person was compared.

In the years from 2019 to 2025, regions with faster population growth tended to have faster total GDP growth but slower growth per person; the analysis distinguishes growth in economic size from growth per resident or worker.

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