The industrial sector in the A.C. of the Basque Country grew by 7.7% in 2005, according to EUSTAT data. The growth was mainly based on the energy sectors and, to a lesser extent, on Rubber and Plastic, Non-metal Industry, Timber Industry and Chemical Industry, which grew over the industrial average (7.7%).

In 2005, industrial employment began to slow down and fell by 0.7%. It rose 1.2% in 2003, increased by 0.9% 2004 and then fell by 0.7% in 2005. In 1994 industry employed 192,274 people and in 2005, eleven years on, industrial employment in the A.C. of the Basque Country accounted for 249,969 jobs, i.e.. an increase of 57,422 jobs.

Evolution of the Industrial Sector 1997-2005. Rates of growth

Source: Eustat

Some of the most outstanding features of the industrial evolution of the A.C. of the Basque Country in 2005 are:

• The increase in industrial added value (nominal 7.7%) came from the energy sector, which was well ahead of the average industrial values. Specifically, the Oil Refining sector grew by 47.8% and Electricity, Gas and Water by 22.2%. These were followed by the Rubber and Plastic sector (12.7%), Non-metal Industry (8.9%), Timber Industry (8.7%) and the Chemical Industry (7.9%). These all clearly surpassed the industrial average, which important sectors such as Metallurgy and Metal Articles (5.0%), Machinery (4,9%) and Transport Material, which registered negative growth (-0.3%), remained under the mean.

• Growth of Basque industry (including energy) was 3.9 points higher than state industry (also including energy). Industry in the A.C. of the Basque Country grew by 7.7% in 2005, compared to 3.8% for state industry.

• Gross Operating Surplus was up by 13.3% and Personnel Costs increased by 3.4%.

• Energy, Rubber and Plastic and Timber Industry are the sectors that surpassed the average growth of the Gross Operating Surplus for the industrial sector.

Main industry variables. A.C. of the Basque Country

Fuente: Eustat

• In 2005, industrial sector investment recorded a moderate evolution, with an annual growth of 3.8%.

• Turnover increased by 9.4% in 2005 compared to the previous year.

• Pre-tax results grew by 17.3%. The most outstanding sectors were Energy, Rubber and Plastic, Timber Industry, Machinery, Non-metal Industry and Transport Material. All these sector branches exceeded the industrial average (17.3%).

• Cash flow was up by 10.7% as the result of the strong growth in pre-tax results (17.3%) and a more modest evolution of Depreciations, which were up 0.1%.

• In 2005, job numbers increased in the energy sectors (Oil Refining and Electricity, Water and Gas), Non-metal Industry, Rubber and Plastic, Food Industry and Electrical Goods.

• The greatest industrial growth in 2005 was recorded in Bizkaia. Its annual growth of 10.2% was based on the performance of the energy sectors located in that territory. The next in line was Gipuzkoa, where growth was 6.8% and Álava was in third position, where industry grew by 4.4%.

The construction sector grew by 9.1% in 2005

The construction sector in the A.C. of the Basque Country registered 9.1% nominal growth. That was up by 10.3% compared to 2004 and in line with the figure for the previous year, even though growth in 2005 remained in single figures.

Main Construction variables in the A.C. of the Basque Country

Fuente: Eustat

• The number of people employed in the construction sector grew by 2.9%, reaching a figure of 93,176 employees, which was up by 2,400 people compared to 2004.

• Gross Added Value created by the Construction sector grew by 9.1% in 2005.

• Gross Operating Surplus was up by 11.0% and Personnel Costs increased by 8.1%.

• Investments registered a modest growth of 0.6%.

• Turnover increased to an annual rate of 12.5% in 2005.

• Pre-tax results grew by 13.2% and the Cash Flow was up by 10.6%, as Depreciations fell by 2.8%.

The construction sector continued to grew both in terms of added value generated (9.1%) and personnel (2.9%), but the rate of growth was slower in 2005 compared to previous years.