Regional Economic Development

To evaluate economic development at regional level we examine the latest statistical data from Eurostat on regional gross domestic product (GDP) per inhabitant, net primary income per inhabitant, employment rate and labour productivity available for the 5 regions of TRINEFLEX demo sites.

TRINEFLEX Demo Cases	Regional GDP 2021	GTP annual change (%) compared with 2020	GTP annual change (%) compared with 2019	Net primary income 2020	Employment rate 2022	Nominal labour productivity 2020
Basque Country (ES21), Spain	108	+5.5	-5.8	20,500	73.9	103
Region of Murcia (ES62), Spain	69	+5	-4.6	13,700	67.8	72
Veneto (ITH3), Italy	107	+7.3	-3.3	20,600	72.9	103
Central Greece (EL64), Greece	65	+10.3	+9.5	10,000	66.6	47
Attica (EL30), Greece	86	+7.7	-1.8	14,700	69.3	58

Regional GDP per inhabitant is expressed as an index of purchasing power standard (PPS) against the EU average of 100. The purchasing power standard is an artificial currency unit that is used by Eurostat in order to compensate for price level differences between countries. The region of Central Greece (EL64) while holds the lowest GDP per inhabitant compared to the other 4 regions, it demonstrates a high economic growth rate and performed a dynamic rebound in 2021 compared with the pre-pandemic era. The regions of Basque Country (ES21) and Veneto (ITH3) have very similar values in all indices but the latter seems to possess an increased momentum in its economic recovery after the Covid-19 crisis.

The net primary income covers income from paid work and self-employment, as well as from interest, dividends and rents. It reflects the overall economic productivity of the region as well as insights into the region’s economic diversification. In 2020, EU primary income per inhabitant averaged 19,500 PPS. Most Greek regions, including Central Greece (EL64), are significantly lagging behind the EU average. The region of Attica (EL30) exhibits the highest net primary income in the country but still almost 25% behind the EU average. The region of Murcia (ES62) is also well below, mirroring the pattern of poor economic performance prevalent in Southern Europe. Basque Country (ES21) holds the second place in best income net primary income per inhabitant over Spain and along with Veneto (ITH3) are the only regions in TRINEFLEX that stay above the EU average.

Employment rate concerns the percentage of people aged 20–64 that are employed in the region. A higher employment rate indicates a healthier and more attractive economic environment in the region increasing its appeal to investors and enhancing its overall competitiveness. In the regions of Basque Country (ES21) and Veneto (ITH3), nearly three-quarters of the working-age population is employed, reflecting their robust economic dynamism. In contrast, the other three less economically developed regions tend to exhibit employment rates closer to two-thirds, highlighting the need for targeted economic development initiatives to boost employment and enhance regional prosperity.

Nominal labour productivity is defined as the regional GDP divided by a measure of labour input such as the total number of hours worked. High labour productivity is linked to the efficient use of labour and reflect the skills and experience of the labour force in the region. In the table above it is presented as an index in relation to the EU average, which is set at the value of 100. A disparity emerges between Greece and the other three regions. Central Greece (EL64) and Attica (EL30) hover around the half of the EU average, while Murcia (ES62) falls slightly short of 75%. In stark contrast, Basque Country (ES21) and Veneto (ITH3) elevate themselves above the EU average, cementing their position as frontrunners.

These diverse economic conditions across the five regions present a valuable opportunity to explore how varying levels of regional performance influence the roles, capacities, and interactions of local energy actors in driving forward the energy transition.