The economic crisis hits Catalan industrial areas. In Catalonia there is a total of 35,000 hectares of industrial plots of land. Up to 40% of this surface has no use after four consecutive years of losing activity, and during this time there have been more industrial buildings closing than opening.
With 5.13 billion in foreign sales in June, Catalan exports have grown by 6.6% over the same period in 2011. Amongst the Autonomous Communities, Catalonia ranks first for its export economy, in the first six months of this year Catalan companies sold up to €29.1 billion abroad. The increase in foreign exports and the fall in imports have reduced the trade deficit by 31% in the first six months of this year.
The Catalan Government’s drug prescription fee and the Spanish Executive’s decision to make citizens pay for a greater share of prescribed drugs have had an effect on inflation. The price of pharmaceutical products has had its highest increase since at least 2003.
The Catalan economy remains in recession and decreased by 1.1% compared to last year. Although tourism and the foreign sectors have seen an increase, internal demand has been reduced, decreasing business in the industrial, construction and services sectors. The number of foreign tourists increased by 12.3% and tourist spending increased by 14.3%. In both cases, the percentages are much higher than the figures for Spain as a whole (2.9% and 5.6% respectively).
Unemployment dropped in July by 784 people, which represents a 0.13% decrease compared to a month ago. It is the fifth consecutive month that the number of unemployed people has decreased in Catalonia, reaching 614,792 jobseekers. In the whole of Spain, unemployment decreased for the fourth month in a row, dropping by 0.6%. Long term unemployment and youth unemployment have decreased in Catalonia. However, compared to 12 months ago, general unemployment has increased by 7.8%. In addition, the number of indefinite new contracts dropped by 1.3% compared to a year ago.
Catalan companies sold more goods and services abroad than they did to the rest of Spain in 2011. 52.9% of all Catalonia’s external sales were made abroad, while 47.1% were made to the rest of Spain. In addition, it is the first time that Catalonia has registered a positive balance of trade.
Sales of industrial goods to non-EU markets increased by 28% between January and March. Catalan industry reached a record in 2011 by exporting €55.19 billion in goods. However, the sector continues to lose jobs, which makes it more competitive in return. Also, industrial investment increased by 2.4% in 2011.
Catalonia’s GDP decreased by 0.1% between January and March 2012, which represents a minor drop compared to the last quarter of 2011. However, the Catalan economy has had red numbers for two consecutive quarters and technically enters a recession. The good results in the tourism and export industries improve the macroeconomic figures.
Considering the “exceptional” crisis Spain’s banking system is going through, the Cercle d’Economia, a Catalan economic forum open to businesspeople and academics, recommends “drastic” measures in order to face a “systemic” problem at European level. The Chairman of Cercle d’Economia, former Spanish Minister Josep Piqué, stated that Spain “will not succeed on its own”.
The number of international tourists who have visited Catalonia over the first three months of 2012 reached 2,162,337 people. This figure is a 9.9% increase over last year and represents 23.5% of the total number of foreigners visiting Spain.
The volume of freight and liquids transported through Tarragona Port in the first 3 months of the year reached more than 9 million tonnes. The movement of liquids increased significantly, notably oil derivate products, after last year’s technical halt at Repsol’s refinery.
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.
The President of the European Central Bank, whose Governing Council met in Barcelona on May 3rd, praised the Spanish Government’s “significant effort” made in a “very short period of time” to approve structural reforms. However, Mario Draghi, asked Spain “to persevere” in the strategy based on austerity and accomplish further reforms. The ECB’s President emphasised Europe’s need to adopt measures strengthening economic growth but without abandoning the principles of austerity. Draghi recommended continuing to reduce public spending in order to control the deficit. As expected, the ECB is maintaining the interest rate at 1%.
Unemployment in Catalonia reaches a new historical record with 836.900 people registered as out of work. Spain’s unemployment rate at the end of March was 24.44%, reaching a total figure of 5,639,500 jobless people. The Spanish Vice President said on Friday that Spain is living “the harshest moments” of the crisis and that the data show that reforms need to be pursued. The Catalan Government criticised the Spanish Government for reducing the budget for employment policies by 56% due to be implemented in Catalonia in its budget proposal for 2012.
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.