Economy
Economy of Castile and Leon
The economy of Castile and Leon has long been centred on agriculture and livestock. More than half of the region's vast landmass – covering around a fifth of the nation – is arable land, with notable crops including wheat, sugar beet, potatoes and (to a lesser extent) wine. Large modern farms also raise millions of cattle, pigs and sheep every year.
Rural Spain suffered a steep population decline in the 20th century (especially around the time of the Civil War) when workers moved away from the countryside and provincial capitals to large cities in search of jobs. Castile and Leon was no exception to this trend – emigration to the industrial and urban centres of the nation was extensive during this period.
Although the economy remains significantly agricultural today – and the community still produces a significant amount of Spain's foodstuffs – the National Industrial Institute has introduced tax incentives in the regional capital of Valladolid to encourage companies to establish themselves in Castile and Leon.
These incentives have seen some success, with a solid and steady growth in industry reported over recent years. Extensive infrastructure – the region features high-speed rail networks, four airports and five dry ports – coupled with a higher than average GDP growth is set to encourage further investment in the area.
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The agri-food industry – with production of such goods as flour, oil and wine – has established itself in most provincial cities, representing the majority of Castile and Leon's specialized industry. The growth of Valladolid into a strong urban centre, however, began with automobiles when Renault opened Spain’s first car factory there.
Developments in energy technology have also been significant in Castile and Leon. The Salamanca and Zamora provinces now generate around a quarter of Spain's hydroelectricity, whilst there are also 100 operating wind farms. As such an important 21st century resource, alternative power is likely to have a large effect on Castile and Leon's economic future.
Today, tourism is also a growing source of income for the region. Visitors searching for relaxation can enjoy self-catering villas or country cottages in the picturesque rural landscape of Castile and Leon, whilst culture enthusiasts will be charmed by its seven UNESCO World Heritage sites. Around half of Spain's artistic and historic heritage sites can be found in the region and there are a number of National Parks for nature lovers.
Thanks to the increase in tourism, the leisure industry has seen parallel developments. Activities from horse-riding and golf to canoeing are now popular in the area and when winter arrives, the ski slopes continue to bring in visitors.
The wine-growing areas along the Duero River – which bisects the region – are an additional attraction and have expanded significantly since the end of the 20th century. Castile and Leon wines, particularly those from Ribera del Duero, are gaining prominence among other Spanish wines and the 400 bodegas now produce a range of quality vintages.
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