The Valencian Community's Economy Maintains Momentum, Surpassing Spanish Average

The rebound effect of the DANA on the economy has once again boosted the Valencian Community, closing the first quarter of 2025 with strong growth figures and a trend that, if continued, would see the region grow above the national average. This quarter saw a 0.7% increase compared to the previous one and a 2.6% year-on-year growth.

This is explained by the Valencian Business Confederation (CEV) in their Economic Situation and Outlook Report for the first quarter of 2025. The business association indicates that the Valencian Community is experiencing "a notable growth rate in 2025."

However, it will depend on the global situation. In a context of widespread deceleration both globally and nationally, the Valencian Community is not immune to this scenario. The CEV notes that "downside risks come from abroad, stemming from the delicate geopolitical situation."

Nonetheless, if these risks do not materialise, "our economy could maintain a notable growth rate this year, surpassing the national average by several tenths," highlights the business association, which emphasises that this increase will allow for "net job creation."

The confederation details that growth has been driven by "the rebound effect from the recovery after the DANA and the repair of infrastructure and operations, thanks to the joint effort of companies, self-employed workers, employees, and civil society." However, they insist that this effect "does not fully offset the global deceleration affecting most economies."

By sectors, the primary sector continues with a "complex evolution," marked by difficulties in the citrus campaign and aid following the DANA, although exports have increased. As for the industry, it slightly improves compared to the previous quarter, albeit with uneven progress. Construction also shows improvements in employment and the number of companies, although with fewer real estate transactions. Finally, services continue to advance, "albeit at year-on-year rates lower than those of previous quarters."