Valencian Community - Economics

Economics

Valencia conforms an elongated territory, with a rather steep and irregular orography that has made communications and the exploitation of the soil historically difficult, despite the soil being particularly fertile in the coastal plain. This coastal axis has facilitated connections with Europe, either by sea through the Mediterranean, or by land through Catalonia.

The natural resources of the Valencian territory are small with regard to minerals other than the important marble quarrying industry in the Alicante province.

As for hydrological resources (see Geography above) there is a demand of water superior to the supply, making this imbalance especially serious in the Alicante province. In years when drought is particularly severe, the problem is mitigated if necessary, with occasional nocturnal restrictions during Summer and water-bearing subterraneans exploitation. This remains a source of harsh controversy over hydrological resources with neighbouring regions such as Castile–La Mancha and Catalonia.

Due to the secondary and tertiary sectors boom by the times of the Spanish miracle during the 1960s, the agricultural sector has seen its relative importance reduced over time (not so the absolute figures), but it remains to be credited -under the form of citrus cultivation for the export market- for the first economic boom by the late 19th century after centuries of slow development, if not decay. Castellón and Valencia provinces still have thousands of hectares of citrus producing groves and it continues to be a major source of income on the countryside. In the Alicante province, citrus is also present but agriculture is more diversified with a higher presence of vegetables, especially in the Vega Baja del Segura area.

The high insulation rate and overall stable weather which during the Summer may pose a threat to water supplies either for agricultural or human consumption, conversely allow tourism to be the main economic industry with a very high density of residential housing along the coast occupied by locals, people from inland Spain and from other EU countries (mostly from the British Isles, Benelux, Germany and Scandinavia) which seasonally boost population (and hydrological demands) in the summertime.

In 2004, Valencia's GDP was 93.9% of the European Union average even though this figure may be affected positively by the important presence of foreign residents either from other regions of Europe or economic immigrants which are not properly represented in the official statistics. Growth rates after 2004 have been significant in overall Spain and additional progress from present figures is going on as of 2007.

In 2008, the Land of Valencia generated 9.7% of the Spanish GDP. In human resources, the rate of unemployment was located over 21% in 2009 being greater among women, and the rate of activity reached 56.8% in 2002. The typical Valencian business is rather small and medium company, mainly family-owned and operated, although there are some multinationals.

In addition to tourism, the Valencian economy is characterized by a marked exporting dimension, being the second exporting Spanish autonomous community, constituting 12% of the national total. The major exports are agricultural products, ceramic tiles, marble products and cars (Ford has an assembly line in Almussafes) among others, which make the port of Valencia one the busiest in Spain.

In 2011, the Valencian Community ranked the 114th largest country subdivision by GDP (nominal), just behind Uttar Pradesh (India) and ahead Andhra Pradesh (India).