Business

The Catalan capital is considered the best city for quality of life. However, it does not reach the top 5 regarding telecommunications, international transport, and market access.

Comparing the annual inflation rate registered in August, prices increased from 3.0% to 3.2%, after four consecutive months of drops. For the whole of Spain, the annual inflation in September was 3.1%.

In Spain as a whole housing sales dropped by 38%.New-build apartment sales in Catalonia fell by 35% in August, compared to the same month in 2010.

The Franco-Japanese company has chosen the Catalan car component manufacturer Ficosa as their only automatic gearbox supplier for all the new cars targeting a middle-class market segment. The agreement is for the European, North-American, South-American and Asian markets. It will represent a sales volume of 45 million euros for Ficosa. The news reinforces Greater Barcelona as a base for the automotive industry.

The Catalan low cost airline, which is based in Barcelona, has announced new destinations from Barcelona, as well as an increase in frequency on other routes. Vueling’s President, Josep Piqué, presented the airline's latest news for next season. He also said that a low cost airline like Vueling is the only airline capable of stopping Ryanair’s expansion in Barcelona, in a clear reference to Spanair.

Catalan GDP grew by 0.7% during the second quarter of 2011 compared to the same period in 2010. However, in the first quarter it grew by 1.1%. The export sector continues being the Catalan economy’s engine, while internal demand fell. Catalan GDP grew by 0.2% from the first to the second quarter this year, the same rate than for the rest of the European Union. At the end of 2010, Catalan GDP represented 209.7 billion euros, more than Finland’s, Portugal’s or Venezuela’s.

After not having found the needed private investors to meet the required levels of core capital, the Bank of Spain’s Governor announced that the Spanish State would intervene in four savings banks, including two from Catalonia. The State will control 100% of Unnim and 90% of CatalunyaCaixa. Once the banks are streamlined, private investors will be offered shares. The European Commission has authorised the operation. Now, all Spain’s banks and savings banks have at least 8% core capital. Considering the global banking sector restructuring in Spain, the Spanish State has spent 19,000 million euros from the public finances.

Barcelona-based CaixaBank, the private bank of ‘La Caixa’, will pay 16 million euros for the purchase of both businesses. Bankpime is a bank for small and medium-sized companies. CaixaBank will control a total volume of 1,200 million euros. CaixaBank will buy Bankpime’s credit investment portfolio -which is worth 363 million euros-, the fund management business –with some 400 million euros traded, the 19 branches of the bank, and client deposits worth some 436 million euros.

The Catalan airline wants to consolidate its hub at Barcelona Airport. Spanair, partially owned by the Catalan Government, plans to transform Barcelona El Prat into an international hub in its own right.

Sales abroad accumulate 19 consecutive months of two digit increases compared to the same period last year. In July, exports increased by 14% in relation to July 2010. The export sector is becoming the main engine of the Catalan economy, together with tourism.

The Port of Barcelona registered a record in the number of containers destined to international exports. China has consolidated its position as the main destination of containers departing from Barcelona. In addition, the number of cruisers boomed by 17% in the first eight months of the year compared to the same period last year.

1.9 million foreign tourists visited Catalonia in August, representing a 2.9% increase on the same month in 2010. Catalonia hosted almost a quarter of all international tourists visiting Spain. The number of international visitors who came to Spain in August increased 9.4% compared to last year, totalling 7.64 million.

The car is inspired by the car ‘Up!’ that Volkswagen presented at the Frankfurt Motor Show. Car manufacturer SEAT is based in Greater Barcelona, which is the main automobile cluster in Spain.

Brussels believes it is "unlikely" to relapse into a second recession but warned that the possibility "can not be excluded". The European Commission has not lowered its growth forecast for Spain or the whole of the Euro area despite the financial turbulences of the last weeks.

The inter-annual rate shows four consecutive months of price decline which has not been seen since November 2008.