Business

Catalonia’s exports during last January and February had a total value of €9.24 billion. Catalan imports increased by 0.24% in the same period and have, registering in those two months a total value of €11.22 billion. The European Union received 64.28% of Catalonia’s exports. However, exports to markets such as Switzerland and Russia increased by 69% and 40% respectively.

A research study carried out by Barcelona’s Universitat Pompeu Fabra (UPF) has concluded that there is a constant trend of decline. Between 2006, when prices peaked, and the end of 2011 Spanish property prices have dropped by 41.7% as average. The coordinator of the study, José García-Montalvo, pointed out that there has been an accelerated fall from the second half of 2010 and the same period in 2011 when prices dropped 19.7% in Spain. García-Montalvo added that this trend would not change in the short or mid- term if the credit market does not recover.

The Russian company Lukoil has reached an agreement with the Catalan company Meroil to build 13 new oil tanks at Barcelona Port, which are able to store 360,000 cubic metres. Furthermore, Barcelona Port is the only Mediterranean port ready to host the largest and deepest oil tankers. The Catalan President, Artur Mas, unveiled the infrastructure and emphasised Catalonia is strengthening its position as “Europe’s gateway for goods coming from Asia and North Africa”. He also noted Catalonia’s attractive position for foreign investment. Barcelona Port is linked by international width standard railway with Central Europe and has the Zona Franca logistics and industrial district next to it.

During the first quarter of the year, the Catalan bank placed €293 million in provisions to strengthen its financial position. Despite the provision, Banc Sabadell had a net profit of €80 million in the first 3 months of 2012, which represents a 5% decrease when compared to the same period last year. The CEO of Banc Sabadell said that creating a “bad bank” in Spain to manage real estate assets is “unnecessary”, as the Catalan bank is “self-sufficient” and is “satisfied” with the management of its own real estate assets.

The Barcelona-based multinational will manage more than 7,500 kilometres of toll highways worldwide and will increase the company’s annual turnover by €1 billion. The Catalan company Abertis will become the world’s leader in the highway management sector after adding OHL’s concessions in Brazil and Chile. In exchange, OHL would buy ACS’s shares in Abertis, which represent 10% of the Catalan company. The operation is not fully closed yet, pending to be approved by the respective boards, but it has already been officially announced.

It is the first time Seat, whose factory is in Greater Barcelona, presents a new car model in Asia. Seat has started to export cars to China this year. The new model aims to guarantee Seat’s implantation in China and to foster the company’s international expansion.

The 21st edition of Catalonia’s International Tourism Fair takes place between April 20th and 22nd in Barcelona. In this annual trade fair, the sector displays its best offers and trends. This year sport tourism, wine tourism and the camping sector are some of the main attractions. More than 200,000 people are expected to visit the event. Tourism represents 12% of Catalonia’s GDP, employing more than 400,000 people. The Catalan tourist industry welcomed 23.5 million visitors in 2011 and earned €11.3 billion; estimates for 2012 expect figures to increase by 7%. National Geographic included the Costa Brava as one of its top 20 destinations worldwide.

Spain’s largest bank presented its results for 2012’s first quarter. Barcelona-based CaixaBank has reduced its profits by 84% compared to the same period last year in order to immediately fulfil all the new financial requirements decreed by the Spanish Government in February. The Catalan bank has allocated €2.44 billion in provisions in the last quarter. CaixaBank’s CEO explained they wanted to concentrate their efforts in this first quarter. Besides, the bank’s President explained that despite Repsol-YPF’s episode in Argentina, they will carry on with their expansion plan in the Americas, with the support of Carlos Slim, opening new branches in Chile, Colombia and the United States.

In the three first months of the year, the inflation rate remained stable in Catalonia. The monthly price increase, which is the highest since October 2010, is mainly due to the end of retail sales and the oil price increase. In Spain, prices increased by 0.7% in March, while the annual inflation rate was set at 1.9%.

The bank created from Catalan savings bank CatalunyaCaixa is expected to be sold within the next two months. CatalunyaCaixa was intervened by the Bank of Spain last September 30th, as it could not reach the required core capital. The Spanish Fund for Orderly Bank Restructuring (FROB), owned by the Spanish State, currently owns 89.74% of CatalunyaBanc. The FROB has decided to disinvest in the Catalan bank, which starts a competition process that will sell 100% of CatalunyaBanc’s shares.

Tourism from Russia and former Soviet republics has been increasing in Catalonia over the last few years. The Russian tour operator Natalie Tours announced that it will bring 35,000 Ukrainian tourists to Spain, 80% them going to Catalan beaches and the rest to the Canary Islands. Within the next 5 years, the number of Ukrainian tourists is expected to reach half million people. Furthermore, the number of tourists from Eastern Europe is expected to increase between 35% and 40%.

The Spanish Minister for the Economy, Luís de Guindos, wants to speed up the process and have the entire Spanish banking system restructured before the summer. The Spanish Minister also said that he is expecting further concentration processes of other financial entities to be announced in the coming weeks. CatalunyaCaixa’s banking business had a profit of €304 million, although the €1.5 billion provisions for the real estate business caused a €1.34 billion loss in 2011.

It is the first time since 2007 that unemployment has dropped in the month of March. In total, at the end of last month there were 638,247 people registered as unemployed in Catalonia. The number of unemployed people decreased throughout Catalonia, especially in Girona and Tarragona provinces. However, in Spain, unemployment increased by 38,769 people, reaching a total figure of 4,750,867 jobseekers.

The 2012 Alimentaria Exhibition welcomed 40,000 international visitors, which represents 29% of the 142,000 attendees. It represents an 11% increase compared to the last such event in Barcelona in 2010.

The Catalan company Áreas will manage two service areas in the United States until 2047, including the largest in the entire country, located on the I-95 in Maryland, the busiest motorway in the US. The Catalan company will invest $56 million in their renovation, which will produce a turnover of about $1.8 billion in 35 years. With this operation, Áreas becomes the second largest operator in the US. The Catalan multinational ended the 2011 financial year with a turnover of €649 million, which represents 4% more than in 2010. This growth has been possible due to the company’s expansion in international markets.