Valencian Community
Valencian Community shows portfolio resilience: 81% of Spain's ceramic tiles, Ford assembly, citrus exports diversified enough to absorb October 2024 floods.
The Valencian Community exemplifies Mediterranean economic diversification: tourism, ceramics, agriculture, and automotive manufacturing create portfolio resilience absent in single-sector regions. The territory generates 9.3% of Spanish GDP (fourth highest) from an export base including 81% of national ceramic tile production, 13% of Spanish agri-food exports, and Ford's Almussafes assembly plant making Valencia one of Europe's busiest ports.
The October 2024 DANA floods tested this diversification. Heavy rainfall triggered flooding that damaged infrastructure and disrupted economic activity, reducing 2024 GDP growth to 3.0% (below the 3.2% national average) by 2-3 tenths of a percentage point. Yet the multi-sectoral structure limited damage: while tourist overnight stays fell 0.1% year-on-year (January-April 2025), foreign arrivals still rose 7.1%. Ceramic exports from Castellón continued. Citrus groves in Valencia and Castellón provinces maintained production. The reconstruction effort, supported by EU funds, will boost near-term growth.
This resilience through diversification mirrors ecological portfolio effects: when one sector declines, others compensate. Alicante's technology sector complements traditional ceramics; the real estate industry serves tourism and local residents alike. The Valencian Community's Mediterranean position channels trade flows that create natural diversification pressures—unlike island economies locked into tourism monocultures. CaixaBank forecasts 2.5% GDP growth in 2025, slightly above the national average, suggesting the DANA impact will prove temporary.