Business

For the second time this year, prices have decreased in Catalonia in annual terms. By the end of November, inflation dropped by -0.1% compared to 12 months ago, mostly due to a drop in electricity and fuel prices, according to figures released on Friday by the Spanish Statistics Institute (INE). In monthly terms, prices stagnated over November compared to the October ones. In the whole of Spain, prices dropped by -0.1% in monthly terms and by -0.4% in annual terms. Spain is now accumulating 5 consecutive months of negative inflation rates. The INE explains this annual drop by the price decrease of housing (which includes electricity), transport (which includes fuels) and food and non-alcoholic drinks. In November electricity prices only increased by 0.7% in annual terms, while they grew by 1.7% in October. Fuel prices dropped by -1.8% in November, while they had only decreased by -1.1% in October.

The number of passengers travelling through the main Catalan airport continues to grow year after year. Between January and November, 35.1 million people used this infrastructure, which represents a 6.8% increase from the same period in 2013. In the first 11 months of 2014, the number of passengers almost reached the global passenger figure for the whole of 2013: 35.2 million. In monthly terms, Barcelona El Prat posted a 3.8% passenger growth in November, reaching 2,473,568 passengers. EU passengers increased by 8.5%, while passengers from non-EU international flights dropped by 3.4% from November 2013 and those from domestic flights decreased by 0.2%. These figures coincide with a great increase of intercontinental passengers going through Madrid Barajas, which increased its global number of passengers by 9.3% in November, after years of drops. Besides, the airline Norwegian has announced the opening of 5 new routes from Barcelona.

The Catalan Government is now managing the sale of the 150 hectares owned by La Caixa on which the BCN World holiday resort should build its 6 macro-casinos. On Thursday the bank and the Catalan Executive signed the agreement, which comes the day after the private investor Veremonte announced it was postponing the land purchase once again. Veremonte had an exclusivity agreement to buy 500 hectares of land before December 10 at midnight for €380 million, but it postponed the purchase because the urban planning details were still unknown. However, the core of BCN World's project, which is the 6 Las Vegas style hotels and casinos as well as a luxury shopping mall, only takes up 150 hectares. The Catalan Government decided to jump in to strengthen the project and guarantee that the main plots will be available for private investors to build the casinos. It will manage the sale for the next 18 months, while the definitive and detailed urban planning for the area should be approved in July 2015. The other hectares will be directly sold by La Caixa.

Veremonte has decided not to buy the land to build the macro-casino and holiday resort yet and it will wait until it has a better knowledge of the town-planning project's details, which are currently being defined by the public authorities. The main company behind the holiday resort had an exclusivity right to purchase some 500 hectares of land from a Caixabank's subsidiary until December 10 at midnight for €380 million. Veremonte has confirmed it will continue to work on the $6 billion BCN World project with Hard Rock, Melco, Value Retail, Melià and Caesars Entertainment and it could buy the land at a later stage. After knowing about Veremonte's decision, the Catalan Government announced it had reached an agreement with Caixabank to manage the purchase of 150 hectares of land during 18 months at no cost, allowing other companies to buy some plots. They have also confirmed that the project will carry on, "with or without Veremonte". The first version of the town-planning project should be issued in later January and the definitive version should be approved during the summer months, in order to allow construction as from autumn 2015. 

According to the Spanish Ministry of Employment and Social Security, the number of unemployed people registered in Catalonia stood at 581,652 in November, representing a decrease of 0.93% since October, with 5,481fewer people without jobs. In terms of the unemployment data, last November was the best one in Catalonia since the data series began in 1996, 18 years ago. In annual terms, unemployment is down again and marks 17 consecutive months of decreases, though with the November decline this makes it an -8.8% decline this year, the most extreme fall since June 2000 (which was -9.25%). Across the whole of Spain, November has also shown the best unemployment figures on historical record, with 14,688 less people unemployed. Within Catalonia, unemployment fell in Barcelona and Lleida, but increased in Girona and Tarragona. 

Barcelona’s main airport should be finally connected by underground railway by February 2016, after years of accumulated delays due to the economic crisis. Works in the stretch of the Line 9 that will connect Barcelona El Prat Airport with the rest of the metro network were completed months ago and now trains have started to circulate to run functioning trials. According to the announced schedule, passengers should be able to use this service as of February 2016, in time for the Mobile World Congress, which is the main event of the mobile phone industry at world level, which takes place each year in Barcelona. The Catalan Minister for Territory and Sustainability, Santi Vila, also announced that passengers travelling to and from the airport by metro will have an additional fee on top of the regular underground tariff. However the fee’s amount has not been announced yet. 

The European Space Agency (ESA) has opened in Catalonia an incubator for businesses working on space technologies, the first of its kind in Spain. It is located in the campus that the Universitat Politècnica de Catalunya (UPC) has in Castelldelfels, a coastal town next to Barcelona El Prat Airport. The incubator is located in the RDIT building of UPC, in what is known as the Energy Campus, and will take up 1,000m2 of space. There are currently four companies installed in the centre, whose operations are centred on "drones" and satellite communication. The project expects to host some 40 companies from now on until 2018. This is the tenth "Business Incubation Centre" that the ESA has opened in Europe so far.

The Catalan fashion multinational Desigual will be strengthening its presence in the Americas over the coming months. In 2015 it will be entering new markets, with the opening of its first three stores in Mexico and three in Montreal, Canada. Its entry into the Aztec country will be made through a franchise, alongside the company El Palacio del Hierro (the Iron Palace) which owns luxury boutiques in Mexico, a market considered a “priority” by Desigual. Thanks to this cooperation, Desigual clothes will be sold in almost 30 different department stores throughout Mexico. In addition the Catalan brand will open its own boutiques in Andares in Guadalajara, Antea in Querétano and in Mexico City. Moreover, Desigual has also committed to strengthening its presence in the US before the end of 2015, with the opening of two new stores, one in Miami and the other in Las Vegas.

The Catalan economy’s indicators are posting positive figures and the research department of the BBVA bank has reviewed its growth forecast for Catalonia for the current and the next years. According to the report issued on Thursday by the BBVA, the Catalan economy will grow by 1.3% in 2014 and by 1.8% in 2015, which are higher rates than those initially predicted. On top of this, 140,000 new jobs will be created in those two years, which represents a 4.3% employment growth. In addition, it puts an end to the negative trend that destroyed 17.3% of the existing jobs between 2008 and 2013. The BBVA also praises “the very significant effort” made by the Catalan Government to reduce public deficit in the last few years, although they will not be enough to meet the strict deficit objectives for 2014 and 2015, unilaterally imposed by the Spanish Government.

Between the 18^th and the 20^th of November, Barcelona is hosting the 4^th edition of the Smart City Expo World Congress. This year it will be the most international edition so far, with 400 cities from 5 continents represented, a 33% increase. Participating cities include Berlin, Munich, Boston, Chicago, New York and San Francisco, who are present at the Fira de Barcelona exhibition centre. The goal of reaching 9,000 visitors may be achieved, as nearly 700 people attended the opening ceremony on Monday. Companies are presenting technological applications for improving the sustainability, mobility and quality of life of everyday citizens. Applications being presented this year include drones for cities, technology to monitor free parking for busy commuters, and applications to assess air quality for the physically active and for choosing the best place to open a business.

According to figures from the Spanish Institute of Statistics, prices in Catalonia have risen from -0.3% in Octoeber 2013 to an annual inflation rate of 0.1% in October this year, the same as that of September. Inflation has been kept low by falling prices of electricity, while the rising cost of fresh food has prevented negative inflation. In Spain, prices have risen from a -0.6% annual inflation registered 12 months ago to a negative inflation of -0.1%, accumulating four consecutive months of negative rates. The prices of fresh food and non-alcoholic beverages influenced the most the annual price increase in Catalonia, and thus offset the low performance in other sectors that are contributing to keep annual inflation close to zero in Catalonia, and in the negative for the last four months in the whole of Spain.

According to official data released by the Catalan Ministry of Economics and the Statistical Institute of Catalonia (Idescat), the Catalan economy grew by 0.5% between and July and September 2014, the latest in six consecutive quarters of positive economic growth. A signal that the recession is far left behind. The whole of Spain also grew by 0.5% in the same 3 months. In annual terms, Catalonia's GDP has grown by 1.8%, mainly thanks to the boost by the services sector,which has demonstrated an annual growth of 2.4%. The sector of industry grew by 1.5% and those of construction and agriculture decreased by -2.6% and -1% respectively. Idescat’s previous predictions for 2014 quarters has been reviewed: the 0.5% initially estimated for the first quarter increased to 0.7%, while the 0.6% for the second quarter dropped to 0.5%.

Catalonia’s registered unemployment figures for October have been released by the Spanish Ministry of Employment and Social Security, and while they have increased it is the lowest rise in four years. The number of people registered at the Catalan Public Employment Service (SOC) stood at 587,133 people in October, a rise of 1.97% since September, with an increase of 11,321 people. This October increase is the lowest in four years according to the Ministry series, which began in 1996. Compared with October last year, the number of unemployed people in Catalonia decreased by 7.37%, equivalent to 46,699 people. Since July 2013, this represents 16 consecutive months of annual decreases. In the whole of Spain, there were 4,526,804 people unemployed in October, 79,154 more than in September. Across Catalonia, unemployment increased in monthly terms in all four provinces, but decreased throughout in annual terms. The Catalan Government "confirms positive trend" in employment.

Abertis, the international group which manages transport and telecommunications infrastructures, has announced it will list its telecom exchange business on the Stock Exchange in 2015. The Catalan company presented its new Strategic Plan for 2015-2017 to investors in London this week. The main objectives of the decision were to develop its business strategy, increase returns for shareholders and boost growth. The company currently owns 8,000 radio, television and mobile signal towers. Besides, Abertis presented its numbers for the first nine months of 2014 to the Spanish Stock Exchange Authority (CNMV), including a net profit of €560 million, an increase of 4.6%. The new Strategic Plan also envisages a dividend increase of 10% for its shareholders every year until 2017.  

The 18^th Edition of the Barcelona Meeting Point will take place between 29 October and 2 November in Fira de Barcelona's Montjuic venue. The trade fair is a real estate exhibition that brings together buyers and sellers to network and learn about the latest industry trends. This year there will be 265 participating companies from 23 countries. According to the show’s President, Enric Lacalle, it will be the first edition to open in a recovering housing sector, after 6 years of crisis and setbacks. The real estate market is strengthening; there was a 36.6% increase in the acquisition of houses by foreigners in 2013 and a 12.5% rise in housing sales throughout Spain. In addition, real estate investment in Barcelona is expected to exceed €1.6 billion in 2014, 30% more than last year. In fact, 21 international investment funds will participate in the trade fair. The show will also include a series of talks and presentations, and offer financing options for property purchase.