It is estimated that the Galician economy to grow by 2.6% in 2016 along with the growing in real estate market in the region.
Galicia is a region of contrasts, and it shows both its landscapes and its economy which varies from the coast to the countryside. Galicia is associated with rural landscapes of permanent greenery that attracts the attention of visitors, along with its beaches ever earn more visitors.
Galicia’s main industry is fishing industry, along with others of great importance such as shipbuilding, manufacturing, and to the field where agriculture and livestock work. Tourism is another important activity that has grown in recent years, mainly to the coastal area and is expected to continue as well. It becomes apparent that the industry in Galicia is related to the primary industry, however, the volume of production is not enough for export, unless in large quantities, as is mostly for local consumption in Spain.
Secondary and tertiary sectors also influence the Galician economy. These include the automotive sector, which generates a total of 6.8 billion euros representing 12% of Galicia GDP has a productive force of 19,700 employees. In this industry, the main producer is the French company Peugeot Citroen whose factory is located in Vigo, and that in total production is 17% of all automobile production in Spain.
The automotive industry is owed also add computers, wood, biotechnology, renewable energy, among others also contribute significantly to the Galician industry.
All these activities gathered make Galicia more interesting for those foreigners who wish to invest in the region and buy a property as well.
What follows is a description in detail, with the main activities in Galicia, whether they belong to the primary, secondary or tertiary sector.
See the main economic activities in Galicia
Galicia highlighted in the three sectors of the economy, and begin by primary, where basic production activities are located.
Fishing has been the economic sector that has always characterized more throughout Galicia, this reference is its world famous food based on seafood. For fishing is part of the Galician gentile, thanks to this, it has served to keep the economy afloat in Galicia even during the economic crisis that began in 2009, as this fishing in Galicia represents 51.5% of the industry fishing in Spain, that is, more than half of the jobs associated with the fisheries are in Galicia, totaling 24000 people and of these, 12,650 work in artisanal fisheries. This sector achieved a total production of 1200 million euros per year equivalent to 2.8% of GDP Galician.
With the economic recovery that has occurred in Spain in recent years, the modernization of the industry is expected through automation of processing fish which seeks to streamline processes for freezing and preserving fish, and exports of such emerging from Galicia, mean 81% of all fish exports coming out of Spain, which are based mainly in Pontevedra, a Coruña and Vigo, mostly with other destinations in Europe.
The livestock industry in Galicia is quite wide, mainly deals with the areas of beef and milk, and related activity also sees the production of sheep and goat meat. Even in Galicia there is a breed of cattle called Cachenas found in the natural park Serra do Baixa Lima Xurés.
4 provinces of Galicia practice animal husbandry, dairy farming being the most important activity representing 5.8% of gross domestic product and generates 32% of jobs in the region. In comparison, livestock in Galicia is slightly higher in terms of contribution to GDP in Spain, the average is 4.9%.
Agriculture in Galicia is characterized by being small scale. However, signs of activity are seen throughout the province. The main crop is corn, which reaches up to 231 thousand hectares of which 1.3 billion tons per year, which are the basis of food for livestock are collected. Wheat and rye are more cereals produced in Galicia, occupying 24 hectares and producing 62 thousand tons. Others also important for the Galician economy items are potato, tomato, onion, lettuce, cabbage and cauliflower, which are produced in small gardens, common in the region by the characteristics of households in Galicia, where still missing technology for mass production, however, it is known Galicia has the potential to further increase its agricultural production, due in main way to soil quality, climate, and vast green space suitable for planting.
As for the secondary industry we have:
Automobile manufacturing and automotive parts is the main activity within the secondary sector, which generates more contributions to gross domestic product with 12%. Automotive companies with factories based in Galicia, are encompassed in CEAGA (cluster of automotive companies in Galicia). This activity generates a total of 19,700 direct jobs, with the factory Peugeot Citroen, which most employees have and also the most important because it is the third car brand largest in Europe and seventh in the world, this is at Vigo, which is a perfect point link for exports to the rest of Europe and America.
It is one of the most important activities in the region, producing 1.7 billion euros a year in wood, pulp and its derivatives. In Galicia they have more than 1.4 million hectares which is equivalent to 207.95 cubic meters per square meters of production, which exceeds the average for Spain. This is due to logging companies in Galicia 3000, employing more than 70,000 people and contribute 3.5% of gross domestic product are concentrated Galician. It should be noted that 50% of all timber produced in Spain comes from Galicia.
Energy activity in Galicia is of great importance for the country, generating about 9% of total consumption in Spain, which are generated mainly by solid fuel sources. In Galicia, they are also building seeking to increase power generation by renewable methods through the installation of wind power plants, solar panels to produce thermal energy and wave energy, which is generated by the movement of the waves .
The naval sector is one of the most important activities of Galicia and is immersed in the Galician DNA. The cities where most movement are Vigo and Ferrol, where the main companies involved in this area, ranging from providing raw materials, transportation and assembly of ships are located. There are a total of 89,000 people working in this industry to help grow this industry and make monopolizes 7% of the European shipbuilding industry.
While for the tertiary sector, the main activities are:
Trade in Galicia, is mostly related to retailers and not on a large scale. 2015 sales increased by 5.5% above the average of Spain which recorded 3.6%.
This has been one of the fastest growing activities in Galicia in recent years, and promises to be a promise for the future, although it has taken time to see the increase.
Galicia is associated with rural landscapes of permanent greenery that attracts the attention of visitors, leaving religion aside, the iconic road to Santiago de Compostela which is must for believers and pilgrims in the world, along with an excellent cuisine based on seafood make this very attractive for tourists from all countries locality. To this is added the number of small, very welcoming people who constantly have festivals of great tradition, giving an affectionate and welcoming atmosphere that meets its coast and evokes a permanent festive and beach atmosphere throughout the year.
Since most preferably foreigners seeking beaches, A Coruña has become one of the most desired destinations throughout Spain, especially in the spring and summer seasons, it is when there is more flow of tourists.
2015 in Galicia spent more than 4.1 million people which means an increase of 11.8% over the previous year, while foreign figures, there was a 18.2% increase in the number of foreign that passed through the region. The properties that grew in number of tourists were: Pontevedra, Ourense and A Coruña in that order.
How the Galician economy is projected?
As the trend has continued since 2013 growth in Spain and in other regions, after starting a process of recovery of the economy to overcome the housing crisis started in 2008 after the economy bottomed with the economic crisis caused by the explosion of a stock market bubble that was generated due to great speculation as to the price of real estate that began in 1998 due to the high level of liquidity that existed at that time, although in truth never reached agreement on whether indeed was speculating prices correspond to the real value of homes, eventually produce the fall in prices, this coupled with the facilities that provided banks for mortgage loans that were much easier to acquire a home, and ultimately showed that it was too good to be true.
By 2016, it is estimated that the growth of the Galician economy to reach 2.8% of GDP compared to 2015, which means about 37 thousand new jobs in all sectors of the economy of the region. However, this increase is not enough for the region, as well as the increase in GDP that has always remained below that of Spain, which has been a historical behavior. Galicia has progressed in productivity and employment in recent years, but still has some way to go to reach the Spanish average per capita GDP.
Therefore, there has never been a better time to buy or rent property in the beautiful region of Galicia, in northwestern Spain, Ignacio Acosta knows about the current situation of the market and offers his consultancy in real estate . Prices have fallen dramatically in recent years, but they will not stay that way, so it’s a good time to buy or rent with low interest rates and rising markets worldwide. There is an abundance of opportunities, ranging from rustic farmhouses, some lists for the restoration ruins, and complete luxury townhouses with swimming pools.
Growth in the economy of Galicia has been an incentive for foreign investment, which mainly Arabs, Europeans, and now the Americans have shown interest in the region. Therefore, large companies like Pemex and Banesco of Mexico and Venezuela respectively, have invested and contributed to other major companies interested in investing in the locality. An example of this is the Pemex investment in Galicia has attracted interest from other Mexican companies such as Grauforz Group and ADO, maybe they are not related to the housing market but have represented a significant capital contribution in the region. Pemex invested only $ 5.1 million.
In addition, large and known worldwide for its wealth names, they have decided to invest in Spain, including Bill Gates are counted or large financial institutions such as Goldman Sachs, who have made significant contributions to the Spanish economy.
With the positive predictions and the wide range of industries and activities that exist in Galicia, it would be an excellent investment, plus an excellent opportunity to further acquire a property. An example of this is the number of companies that have invested in the region and the economic recovery is expected to reach more and more.
Written by: CAPD
Contribution to the reader: carefully review all industries that influence the Galician economy in addition to what the projections for this year 2016. Thus is the importance for the Spanish economy activities in Galicia reflected.