this Valencian economy you have a problem productivitywhich results in companies in the region create less wealth busier than the rest of the country and keeping important ones from closing per capita income difference what separates autonomy from the whole of Spain. On the contrary, compared to the situation that existed in 2007, the distance increased and the Community of Valencia Lost two places in the rankings of Spain wealth per capita.
This appeared on the new day of the year. V. Valencian Economic Congress The Generalitat and social institutions (CC OO, UGT and employers association CEV) organized this Monday and Tuesday in collaboration with the Valencian Institute for Economic Research (Ivie), focusing on analyzing the development of the past 15 years. An event inaugurated by Ana Berenguer, Director-General of Analysis and Public Policy at the Valencian Administration, and Francisco Pérez, Director of Research at Ivie.
In this context, Joaquín Maudos, deputy director of the investigative body, presented the report. State of the Valencian economy and its challengesThe source of the loss of relative positions in the entire Spanish state, emphasizing low productivity as the main weight for the advancement of the Community. The report, for example, after confronting Three consecutive crises – the financial crisis of 2007-2008, the crisis caused by covid and the war in Ukraine- The autonomous community’s GDP is currently 5.3 points below what was recorded in 2007., given the evolution in the fixed euro, ie discounted inflation. A much worse figure than the national one, where the wealth level was also lower than at that time, but only 3.7%.
The result of this uneven growth, if autonomy 15 years ago per capita income was 10% lower than Spanish, now the difference is at 12% and the Community rose from 10th to 12th in the list of autonomies in GDP per capita.
According to the document, the reason explaining this increase in the difference is, productivity. And on average, the Valencian economy 5% less wealth per employee when it comes to a greater difference than that of the country as a whole private sectorwhere the emptiness reaches 6.5%. Likewise, the productivity of capital is 7%.
The document also points to a widespread problem due to the Valencian Community out of 60 productive sectors into which economic activity can be divided. outperforms only 11 of them. Some sectors that barely contribute 14.8% of all GVA.
As if this widespread lack of efficiency wasn’t enough, Valencia’s economy specializing in sectors that produce less added value Trade is provided by those employed, such as traditional industries such as footwear or restaurants, while more productive sectors such as telecommunications or pharmaceuticals weigh less.
poorly educated
This one translates less intensive use of human capitalis measured as the level of education offered to its employees. Thus, the proportion of total university students employed is 31% compared to 43.2% in the most productive autonomies, Madrid or 39.3% in the Basque Country.
Minor must be added to all of the above investments made by companies in intangible assets -in which innovation or intellectual property is framed-. This amounts to just 6.2% of GDP, compared to the average 7.1% or 11.1% in Madrid.
Finally, smaller dimension from companies in the region. Therefore, only 12.3% of Valencians work in large companies – those with the highest productivity index – compared to 16.6% of the national average or 25.6% of Spanish capital.
Moreover, both public sector contributes to the reduction of these differences, as it should. this underfunding It causes Generalitat to have fewer resources to support economic activity and infrastructures to be less equipped.l public capital stock is 17% below the average.
By the same token, the volume of public employment is lower than registered in most of the autonomies. Specifically, the number of public employees relative to the population is 6% lower, and in addition, it exhibits a high aging rate: 40% of employees for Generalitat are over 54 years old.
When faced with this situation, they advocate referral from Ivie. higher investment amounts in intangible assets; professionalize business management to promote innovation and internationalization; to involve qualified human resourcespersistent for s and templates; encourage digital transformation organizations; disseminating and emulating companies best practices.
As far as the public sector is concerned, improve regional finance and raise the level of infrastructure; controlling the financial sustainability of public spending; revitalize and renew public employment profiles; and regularly evaluate public policies.