A positive but insufficient growth
The Catalan economy is experiencing positive growth, but workers do not see this improvement reflected in their wages. According to the annual report on the state of the economy of the Generalitat de Catalunya for the year 2023, although there are good records and prospects in terms of business activity and employment, wages remain insufficient for the majority of the population. Despite this situation, the Acting President of the Generalitat, Pere Aragonès, emphasizes that the Catalan economy is developing positively and that it is one of the engines of growth in Europe.
Highlights
During 2023, the Catalan economy experienced a growth of 2.6%, compared to the previous year. This figure is significantly higher than the average rate of growth of the Catalan GDP during the period before the pandemic. In addition, the Catalan GDP increased five times more than that of the Eurozone during the same period.
Diversification of economic prosperity
The diversification of the economic boom is a prominent aspect in the Generalitat’s report. The services sector has seen robust growth of 3.1%, while industry has recovered with growth of 3.5%. Construction has moderated its growth, partly due to high interest rates, and agriculture has been affected by the drought.
Employment records, but with inequalities
In terms of employment, 2023 was a record year for both Catalonia and Spain. Close to 3.75 million Catalans were employed last year, a figure that has continued to increase during the current year to exceed 3.8 million, the historical maximum. In addition, 40% of the jobs created were in highly qualified positions.
Declining purchasing power
Despite this economic growth and record employment, Catalan workers continue to suffer a loss of purchasing power. The wage cost per worker per month has increased by 5.0% in 2023 and by 10.9% since 2021, but this increase is lower than the cumulative increase in prices, which has been 11.7%. This indicates that the collective negotiations between employers and unions have not been sufficient to protect the purchasing power of workers.
