We maintain our credit rating of the Xunta de Galicia of BBB + with a stable outlook.
Galicia is the sixth economy within the regional group in terms of gross domestic product. With a population of 2.7 million inhabitants and a GDP of 59,105 million euros at the end of 2020. The GDP per capita is 21,903 euros at the end of 2019.
The rating is based on the maintenance of the socioeconomic and financial risk profile with respect to the previous review. Despite the impact of the crisis on the Galician economy (-9.4%) and the increase in the unemployment rate (11,6%), we expect the reactivation of the economy in 2021 & 2022 at a pace of 5.6% & 5.4% respectively, in addition to a solid publics finances. However, our rating is constrained by the challenges related to population aging and the future settlements of the advance payments of the 2020 and 2021 fiscal years.