Business

The major players in the cell-phone-related industries such as Samsung, Sony, Microsoft and Google are currently presenting their new products in Barcelona, consolidating the city’s position as a true meeting point for the sector. For the 10^th consecutive year, the biggest event in the world of mobile industries kicked off in the Catalan capital on Monday. The 2015 Mobile World Congress, organised by GSMA, will be in Barcelona until Thursday, breaking all records during this time. 90,000 attendees are expected from 201 different countries, representing more than 2,000 companies distributed across more than 100,000 square metres at Fira de Barcelona's Gran Via venue. Furthermore, the event has raised the attention of the world's main media and trade publications, with more than 4,000 accredited journalists in attendance at this year’s edition. Facebook founder Mark Zuckerberg and Google's Vice President, Sundar Pichai, were Monday's main speakers.

Barcelona-based Abertis, a multinational company specialised in the management of toll roads and telecommunications infrastructure, has reached an agreement to purchase 7,377 mobile phone towers in Italy at a total cost of €693 million. The Catalan group – which saw its net profits rise last year to €655 million – will acquire 90% of the shares of Galata, the subsidiary of the Italian operator Wind that owns the telephone towers. Abertis will thus strengthen its presence in the transalpine country and become the "largest European operator of telecommunications infrastructure for mobile telephony and audiovisual broadcasting", as the company announced through a press release.

The 2015 Mobile World Congress (MWC) will have an economic impact in Greater Barcelona of some €436 million and create 12,627 jobs, figures that beat last year’s results, when the event generated €397 million and 7,220 jobs. The 2015 edition of the MWC, which is the world’s largest event in the mobile and cell phone-related industries, will take place in the Catalan capital from the 2^nd to the 5^th of March. It aims to attract 5,000 more visitors than last year and reach 90,000 attendees. For the second consecutive year, Facebook founder Marc Zuckerberg will participate in the event. Android creator, Sundar Pichai, and Wikipedia creator, Jimmy Wales, will also be some of the most outstanding speakers at this year’s edition.

Catalan GDP grew by 1.3% in 2014 and will increase by 2.5% in 2015, claims Barcelona’s Chamber of Commerce. “The Catalan economy had a very good performance in 2014, even better than that of Spain as whole, and this acceleration will continue during 2015”, stated the President of the Barcelona Chamber of Commerce, Miquel Valls, on Wednesday. The day before, the Spanish Prime Minister, Mariano Rajoy, announced a revised economic forecast for 2015 and stated that Spain’s economy would grow by 2.4% in 2015. Valls highlighted that all the macroeconomic indicators show positive figures for the first time in the last 7 years, which makes him think that Catalonia’s “recovery from the crisis is a fact”. The industrial sector, exports, construction and job creation are the main reasons behind those predictions, which also benefit from external factors such as the fall in oil prices.

Cookbooth and dondeEsta Family are two of the sixteen apps which are finalists at the Mobile Premier Awards, which will be awarded at Barcelona's Sala Apolo on the 2^nd of March, coinciding with the first day of the Mobile World Congress (MWC). The MWC is the world's largest event of the mobile and phone-related industry, which takes place each year in the Catalan capital at the end of February or in early March. The Best App Award, the Best Audience App and the Big Impact Award will be given. Cookboth is a recipe photo-sharing platform for chefs and food connoisseurs and dondeEsta Family helps families locate their members. Both are available for iOS and Android devices.

According to a recent study published by the Swiss research centre, IMD World Competitiveness Centre, Catalonia would be the 38^th most competitive state in the world if it were independent. The list, headed by the United States, shows that an independent Catalonia would be 2 places above Spain, which currently occupies 40^th position (including Catalonia). The report highlights the strengths of Catalonia such as business efficiency, as well as the weaknesses, which stem from certain inefficiencies of the public sector. Apart from focusing on quantitative indicators, the study also has a section that is based on qualitative surveys of a country’s companies. Catalan executives consider Singapore, Germany, Ireland and the UAE to be the most lucrative for business development and ranked Catalonia 24^th on the list, which is 21 places above Spain.

Exports from Catalonia increased by 3.1% in 2014, reaching €60.2 billion, meaning that more than 30% of the Catalan GDP is sold outside of Spain. Furthermore, Catalan exports grew more than those of Spain as a whole, which increased by 2.5% last year, reaching €240 billion. This means that 25.1% of all Spain’s exports come from Catalonia’s economy, some way ahead of the Madrid region, which produces 11.7% of Spain’s total exports. In addition, the growth rate of Catalan exports was much higher than the Eurozone average (exports from which grew by 1.8%) and also higher than that of EU Member States such as France (-0.2%), UK (-11.1%) and Italy (+2%). The figures posted this Wednesday confirm the good health of Catalonia’s export sector and the high degree of internationalisation of its economy.

The Catalan company announced on Monday that it will start working in Japan, the world's second-largest market for travel agencies. The Barcelona-based firm highlighted "the importance and potential" of Japan, hoping to gain a high market share within the country. Starting business activities in Japan represents "a gigantic step" for eDreams' internationalisation strategy, stated the company. The land of the rising sun is considered to be the largest travel market in the Asia-Pacific region. eDreams' total amount of online bookings is some $30.8 billion. The company expects this type of booking to represent 40% of total bookings by the end of the current year. Including Japan, eDreams operates in 44 different countries, on 5 different continents.

For the first time in seven years, the number of houses and flats being built in Catalonia has increased. The figures for 2014 show that between 4,300 and 4,500 new properties have appeared on the market after seven years of decline. According to Lluís Marsà, President of the Promoters Association of Barcelona, the housing market is recovering due to the improving economy. Marsà says there is still one big obstacle remaining to consolidate the recovery of the sector: “The lack of bank financing which keeps people from purchasing new housing.” While this is a positive development, the housing market has still a long way to go. According to Marsà, “it will probably take 3 or 4 years to fully recover.”

Prices in Catalonia dropped by 1.4% in January compared to the figures for December, which represents the biggest monthly decrease ever registered on the records of the Spanish Statistics Institute (INE) (since 2002, when comparable data started to be compiled). Furthermore, the annual inflation rate posted at the end of February reached -0.9%, which is the lowest figure since July 2009, in the middle of the first economic recession. The sustained decrease of oil prices is the main reason for such results and Catalonia has now accumulated 3 consecutive months with negative rates within the Consumption Price Index (IPC) in annual terms. In Spain as a whole, prices dropped by 1.6% in monthly terms at the end of January, which is also the biggest decrease within the series of comparable records. Furthermore, Spain’s annual inflation reached -1.3%, the lowest since July 2007. 

Barcelona’s office rental sector is improving after years of decline. Real estate company Inmobiliaria Colonial has set the tone by releasing 23 million new shares. Colonial is one of Europe’s leading companies in the office rental market and besides the new shares, they have also bought the main office of food multinational company Gallina Blanca. The property, positioned on L’Hopitalet del Llobregat’s Plaça Europa, one of Greater Barcelona’s business districts, has an area of almost 5,000 square metres and has been sold for €10.4 million. The shares and the purchase both belong to a new strategy to recover from the crisis and get the market back on track.

The multinational Catalan fragrance company Puig has won its perfume imitation lawsuit against Saphir, a company from Zaragoza dedicated to commercialising imitations of known fragrances. The Trademark Court from Alicante found Saphire guilty of “unfair competition” and ordered the Zaragozan company to remove its products from the market and destroy them. Puig accused Saphir of selling brands called ‘Saphir’, ‘Caravan’ and ‘IAP’ specifying that they were imitations of Carolina Herrera, Paco Rabanne and Nina Ricci, international brands run by Puig.

Another positive figure has emerged to confirm the economic recovery after years of crisis. Catalonia’s GDP grew by 1.2% over the course of 2014, which are the best figures since 2007, before the financial crisis, according to early data released on Thursday by the Catalan Statistics Institute (Idescat) and the Catalan Finance Ministry. The figure is higher than the 0.9% economic growth foreseen in the Catalan Government’s budget for 2014 (approved in late 2013) but is lower than an early forecast made in March, when a 1.5% growth was predicted. Besides this growth in the Catalan economy, in Spain as a whole, the economy grew by 1.4%, according to early data released by the Spanish Statistics Institute (INE). Furthermore, the Catalan economy grew by 0.4% in the last quarter of 2014 compared to September figures and by 1.5% in annual terms. In the first, second, and third quarters it grew by 0.5%, 0.4%, and 0.3% respectively (in quarterly terms).

Gas Gas, a motorcycle manufacturer from Girona Province, has ceased production after a creditors meeting at the Mercantile Court.  The company says it has to interrupt the production chain due to difficulties in restructuring a €20 million debt. Gas Gas confirms that, after seven months of failed negotiations with banks in order to restructure the debt and get additional funds, last week it seemed that progress was being made in the hope of reaching an agreement. Meanwhile, the Catalan company has filed a pre-bankruptcy request and has ceased production, but they hope to reach an agreement soon and get back to business once again.

Registered unemployment in Catalonia grew by 6,821 people by the end of January, compared to figures from December. However, it is the lowest increase since 2007 for a month in which many seasonal contracts related to Christmas sales end. Furthermore, more good news comes in the form of the 8.06% drop in annual terms posted in January and the fact that registered unemployment has been decreasing for the last 19 consecutive months in annual terms. However, registered unemployment has also been increasing in monthly terms for the last 3 consecutive months (November, December and January). In the whole of Spain, registered unemployment increased by 77,980 people compared to a month ago, also the lowest increase for this time of year since 2007.