Biology of Business

Castile and Leon

TL;DR

Castile and León shows 'emptied Spain': 18% population decline projected by 2050, but automotive plants produce 20% of Spanish cars from urban islands.

autonomous-community in Spain

By Alex Denne

Castile and León embodies "emptied Spain"—the demographic collapse of interior regions as population concentrates on coasts and in Madrid. Spain's largest autonomous community (94,225 km², 18.6% of national territory) will lose 450,000 inhabitants by 2050 (18% of 2019 population). Already 26.9% are over 65 (vs 20.4% nationally), and 57% live in just 3.4% of the territory. Youth aged 15-29 account for 55% of outmigration—the highest share of any Spanish region.

Yet the automotive industry provides economic foundation where residents remain. Renault's two plants, plus Fiat-Iveco and Nissan facilities, produce 20% of Spain's cars and 15% of car exports; vehicles represent 34.1% of total regional exports. Valladolid's metropolitan area (430,000 inhabitants) concentrates automotive manufacturing alongside chemical production. Northern Valladolid, the "granary of Spain," produces barley, oats, and beets, while regional dairy output (1.5+ million liters annually) trails only Galicia.

GDP growth of 2.1% for 2025 (below Spain's 2.3%) masks structural divergence: Burgos, Salamanca, and Valladolid show dynamism while rural provinces empty. By 2026, GDP per capita could exceed 2019 levels by 9.3 percentage points (Spain: 4.5pp)—a statistic reflecting fewer people dividing regional output rather than prosperity's spread. Castile and León demonstrates how territorial scale without population density creates economies that serve urban islands within demographic deserts.

Related Mechanisms for Castile and Leon

Related Organisms for Castile and Leon