Politics of Galicia - Economy

Economy

In comparison to the other regions of Spain, the major economic benefit of Galicia is its fishing Industry. Galicia is a land of economic contrast. While the western coast, with its major population centers and its fishing and manufacturing industries, is prosperous and increasing in population, the rural hinterland — the provinces of Ourense and Lugo — are economically dependent on traditional agriculture, based on small landholdings called minifundios. However, the rise of tourism, sustainable forestry and organic and traditional agriculture are bringing other possibilities to the Galician economy without compromising the preservation of the natural resources and the local culture.

Traditionally, Galicia depended mainly on agriculture and fishing. Reflecting that history, the Community Fisheries Control Agency, which coordinates fishing controls in European Union waters is based in Vigo. Nonetheless, today the tertiary sector of the economy (the service sector) is the largest, with 582,000 workers out of a regional total of 1,072,000 (as of 2002).

The secondary sector (manufacturing) includes shipbuilding in Vigo and Ferrol, textiles and granite work in A Coruña. A Coruña also manufactures automobiles, but not nearly on the scale of the automobile manufacturing in Vigo. The Centro de Vigo de PSA Peugeot Citroën, founded in 1958, makes about 450,000 vehicles annually (455,430 in 2006); a Citroën C4 Picasso made in 2007 was their nine-millionth vehicle.

Arteixo, an industrial municipality in the A Coruña metropolitan area, is the headquarters of Inditex, world's largest textile company. Of their eight brands, Zara is the best-known; indeed, it is the best-known Spanish brand of any sort on an international basis. For 2007, Inditex had 9,435 million euros in sales for a net profit of 1,250 million euros. The company president, Amancio Ortega, is the richest person in Spain and indeed Europe with a net worth of 44.5 billion euros.

Galicia is home to the savings bank Novacaixagalicia, and to Spain's two oldest commercial banks Banco Etcheverría (the oldest) and Banco Pastor.

Galicia was late to catch the tourism boom that has swept Spain in recent decades, but the coastal regions (especially the Rías Baixas and Santiago de Compostela) are now significant tourist destinations. In 2007, 5.7 million tourists visited Galicia, an 8 percent growth over the previous year, and part of a continual pattern of growth in this sector. 85 percent of tourists who visit Galicia visit Santiago de Compostela. Tourism constitutes 12 percent of the Galician GDP and employs between 12 and 13 percent of the regional workforce.