Tourism and household consumption will drive Catalan growth in 2024.

BarcelonaThe Catalan economy confirms its strong performance in 2024: Catalonia's gross domestic product (GDP, the indicator that measures economic activity) closed last year 3.6% above 2023 levels, a figure four-tenths higher than the Spanish average, driven primarily by tourism, household consumption, public spending, and investment, according to data from the Generalitat (Catalan government).

Idescat thus confirms the figures that had already advanced last January, having already indicated that the Catalan economy would grow well above the eurozone average, which closed last year at a modest 0.7%. Furthermore, for the first time, Catalan GDP surpassed the symbolic figure of €300 billion, reaching €316.728 billion.

Tourism and domestic consumption have been the main drivers of growth, although overall activity grew across all sectors and areas. Growth in services—which account for almost 70% of GDP—is particularly notable, increasing by 4.1% in 2024 compared to the previous year.

More signs of the "consolidation of the competitive model"

In this sense, consumption by foreigners in Catalonia (mainly tourists) increased by a significant 11% compared to the previous year, something that was already expected considering that 2024 was "a spectacular year for tourism," according to Josep Lladós, professor of economics at the Universitat Oberta de Catalunya (UOC). Tourism, therefore, remains one of the pillars of the economy, and the fact that Catalonia has a larger tourism sector than the Spanish average explains, in part, why Catalonia is growing more than the rest of Spain.

Furthermore, household consumption also grew at a strong rate of 3.5%, something common at times when unemployment is falling and jobs are being created. These data (tourism and household spending) explain why, within services, commerce, hospitality, and transportation (activities, in general, with lower added value and that depend on personal consumption) also increased their activity by 3.5%.

However, it is noteworthy that professional and real estate services increased by 4.8%. This difference in growth between professional activities and commerce and hospitality activities is a good sign for the Catalan economy, confirming the incipient change in the economic model that, according to some experts and employment data, it has been experiencing since the end of the pandemic. Thus, sectors with higher added value (and, therefore, higher salaries), such as technology, industrial support services, and the liberal professions, are gaining ground within the Catalan economic fabric. However, Lladós clarifies: "I don't know if we can talk about a change in model, but the competitive model is consolidating," with tourism, but at the same time with an export industry and diversifying services.

In fact, beyond trade, industry also showed good health, with an annual increase of 3.9%, and manufacturing grew at a faster pace, at 4.4%—another distinguishing factor of the Catalan economy, where industry has a greater weight than in most Spanish autonomous communities. In contrast, construction was the major sector that grew the least, at 1.7%, despite clearly remaining in positive figures. Finally, agriculture broke the negative streak caused by the drought and increased its production by 4.2%.

Foreign trade also provided good news, with a positive balance of €27 billion between sales of Catalan goods and services abroad (including tourism) and imports. Regarding merchandise alone, the balance was also favorable to Catalonia, at almost €13.5 billion. The balance with the rest of the country is also positive, at more than €20 billion.

On this point, Lladós highlights Catalonia's industrial and export strength "in a very complicated" international context, with geopolitical and trade tensions, and its main trading partners—especially Germany—showing very meager growth or directly in recession. "The industry is holding up despite all the downturns," he emphasizes.

Investment on the rise

Investment was another pillar of growth last year, with a 3.2% increase. As with services, productive investment in capital goods and other productive assets (a type of investment essentially industrial and business) increased further, by 4.8%, which Lladós attributes to the "digitalization" of companies. Investment in construction increased by 2.5%.

In this regard, in fact, public administration consumption increased by 3.5%, as the good performance of the economy has increased tax collection, which has translated into higher spending. The influx of Next Generation funds from the European Union "plays a role" in both public consumption and investment, the UOC professor recalls.