Population growth can sometimes mask underlying trends in productivity and income. In Alicante, the share of retirees and the balance between different sectors have shaped the region’s overall wealth, reflecting a productivity picture that lags behind other parts of the country. The province’s output is influenced by which goods and services its factories produce, including tourism, and how profitable those offerings are relative to the national average.
From the viewpoint of the Institute for Economic Research of the Province of Alicante, Ineca, the data suggest that even as GDP grows, the province employs a smaller share of the value created per worker than many other regions. Francisco Llopis, the director of Ineca Studies, has emphasized that productivity per employee in Alicante has not kept pace with what could be expected when looking at similar periods in the far north or the center of Spain. This perspective has remained consistent when comparing current figures with those from two decades ago.
Over time, productivity per employee has risen in Alicante, though the gains come with a caveat. In 2000, the average wealth generated per worker stood at 36,786 euros. With the provincial GDP data for 2019, that figure was 54,157 euros, marking an increase of about 47 percent. Yet this improvement sits against a backdrop of stronger progress in other provinces, widening the relative gap in productivity across the country. The latest data show a widening delta, with the gap to the national average increasing from 1,982 euros in the year 2000 to 6,926 euros more recently, or roughly a 11 percent divergence in real terms.
When looking at wealth per employee, Alicante’s position dropped from 22nd in the country in 2000 to 44th in more recent rankings. In terms of this indicator, only Melilla, Granada, Almería, Jaén, Murcia, Málaga, Badajoz and Córdoba recorded lower figures.
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As Francisco Llopis explains, the explanation behind these numbers lies in a set of interconnected factors. Strengthening the production base across the entire economy of Alicante means not only boosting tourism or hospitality but also encouraging diversification within manufacturing, adoption of new technologies, and innovation across different sectors. Although many of the province’s factories produce consumer goods such as footwear, the trajectory of provinces at the top of the productivity table shows a clear pattern: a shift away from heavy industries toward technology-intensive production and modern services. This transformation has occurred over several decades and has reshaped regional competitiveness.
Tourism in the Costa Blanca plays a dual role. On one hand, it attracts visitors with higher purchasing power and contributes to a higher level of efficiency; on the other hand, the region must leverage this asset to foster broader industrial growth and innovation across the economy. The Balearic Islands, with notably high GDP per employee, illustrate a benchmark of how varying regional strategies can yield substantial productivity gains, surpassing Alicante by a wide margin.
Another factor shaping Alicante’s productivity is business size. The province still experiences a relatively high rate of self-employment, with around 20.3 percent of workers operating their own businesses compared to 17.3 percent nationally. This structure can constrain investment in innovation and entry into international markets, limiting the scale and speed of economic modernization.
Public investment also weighs heavily. Since 2008, Ineca estimates a cumulative shortfall in public funding for Alicante amounting to several billion euros, a consequence of delayed or insufficient infrastructure and support. This underinvestment has hindered competitiveness and constrained development opportunities when compared with other regions that have benefited from greater public backing.
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In any evaluation, the aim is not to criticize existing sectors of the Alicante economy. Rather, stakeholders should recognize their importance while simultaneously facilitating further innovation and encouraging the attraction of new companies across sectors that can collectively raise regional wealth. This approach aligns with the broader objective of strengthening investment, improving infrastructure, and expanding markets to unlock new opportunities for Alicante.