catalan economy

"Between 2015 and 2016 the Catalan Government will open new Trade & Investment offices in Belgrade, Tehran, Accra, Tel Aviv and Lima and enlarge its San Francisco-based one", Catalan Business Minister, Felip Puig, announced on Monday. Similarly, the Catalan Executive recently launched a new 'technological antenna' in Boston (Massachusetts) and will soon do the same in Panama, Kazakhstan, Kenya, Senegal and Angola, enlarging its network of business promotion offices abroad. The Minister said that in 2014, Catalan companies exported more than 51% of the Catalan Gross Domestic Product and the Executive is set on further enhancing their internationalisation. "Official data seem to confirm that companies with a stronger global presence suffered the economic crisis less and the Government wants to support them", he concluded.

Lombardy, Baden-Württemberg, Rhône-Alpes and Catalonia will work together to develop strategies to foster the Information and Communication Technology sector in both their own territories and at European level, in order to make the continent hold a leading position in this sector at world level. This has been the main conclusion of the main event of the current presidency of the Four Motors for Europe, which is a regional association formed in 1988 by the aforementioned 4 territories in order to develop common projects and lobby at European level. Catalonia currently holds the association's rotating presidency and has made the development of the ICT sector its main objective, particularly focusing on smart city and 4.0 technologies. Lombardy, Baden-Württemberg, Rhône-Alpes and Catalonia signed on Wednesday in Barcelona a shared declaration strengthening their commitment in this field.

The 17^th edition of the annual International Logistics and Material Handling Exhibition (SIL) kicked off on Tuesday in Barcelona and will be on until Thursday 11^th June. Held at Fira de Barcelona's Montjuic venue, the show will host more than 550 companies (45% international) presenting about a hundred innovations for the first time. The event is the only one of its kind taking place in Spain and the second-biggest in Europe. During the opening ceremony, SIL's President, Enrique Lacalle, pointed out that the logistics sector had not been severely hit by the crisis and now "is giving good news" with a4% rise in corporate turnover expected for 2015. In addition, the nature of the exhibition reflects the character of the hosting city: the Catalan capital's port has the largest logistics concentration of southern Europe and the Mediterranean within a radius of 5 Km and also has a geostrategic location. Finally, the main roads and railway connecting the Iberian Peninsula with the rest of Europe pass through Greater Barcelona.

In times of economic crisis, the Mariano Rajoy-led Spanish Government has been making recentralisation a main driver of its political agenda, using the economic recovery as the reason for passing the reforms. An additional step in this direction was taken on Monday with a new regulation forcing Spanish Autonomous Communities to seek permission from the Spanish Ministry of Finance before granting loans and guarantees to private companies located in their territories. From now on, Madrid's permission will be conditional upon the applicant's compliance with deficit targets. The new regulation substantially curbs the Autonomies' powers to shape their industrial policies, following a reform passed in May that modifies both the Organic Law for Financing the Autonomous Communities and the Organic Law on Budgetary Stability and Financial Sustainability.

The International Monetary Fund (IMF) has reviewed and improved its economic growth forecasts for Spain, going from a 2.5% growth rate for 2015 forecast in April to a 3.1% one foreseen this June, and from 2% to 2.5% for 2016. However, the IMF has also issued recommendations and warnings, emphasising that Spain will have to carry out "additional fiscal efforts" and "structural reforms" in order not to jeopardise the country’s economic recovery. The IMF recommends that Spain reduce the costs of public healthcare and education by making users pay for part of the services. According to the international organisation, Autonomous Community governments – such as Catalonia's – should have greater fiscal responsibilities in such systems since they exclusively manage them. In this vein, the IMF has praised the fiscal consolidation efforts undertaken over the past few years by regional governments and has asked for an increase in their funding and fiscal powers, as well as for the adapting of the deficit targets to their needs.

The price competitiveness index for Catalan industry in relation to other industrialised countries improved by 0.4 points in the last quarter of 2014 compared to the same period of 2013, according to figures released on Monday by the Statistical Institute of Catalonia (IDESCAT). This improvement is particularly noticeable when compared against newly industrialised Asian countries, over which Catalan industry held a 2.7 percent advantage in competitiveness. A recent decline in the Euro's value has aided in facilitating the attractiveness of Catalonia's industrial products in the market. The favourable exchange rate has helped offset the loss of competitiveness of industrial prices compared to other industrialised countries.

Last month Catalonia was where the most intense monthly and annual drops in unemployment were registered in Spain. At the end of May, 531,899 people were on the Catalan Public Employment Service's (SOC) lists. This means 21,075 fewer jobseekers than in April 2015 (-3.81%), representing the most significant monthly drop registered for the month of May for 19 years (when the historical record started). Catalonia also registered a 10.2% annual drop in unemployment in comparison to May 2014 - representing 60,405 fewer people unemployed - the biggest annual decline since May 2000. It is has now accumulated 23 consecutive months of annual decline. In Spain as a whole, at the end of May 2015, the number of people registered as unemployed stood at 4.21 million, with 117,985 less jobseekers than in April 2015. An encouraging sign given that in the last 7 years registered unemployment had been falling at an average of 58,000 people from April to May.

The number of mortgages on homes in Catalonia increased by 35.1% in March compared to figures from March 2014, data from the Spanish Statistics Institute (INE) show, with a total 3,229 mortgages approved. This yearly increase strengthens an uninterrupted trend of 11 consecutive months of annual growth, following 44 months of uninterrupted decline. In Spain as a whole, a 19.71% annual increase in March on figures from March 2014 was registered and 19,806 mortgages on houses and flats were granted. These figures represent the 10^th consecutive month of annual growth at Spanish level. In all the Catalan Provinces, an annual increase was also recorded: Lleida came top with a 76% increase, followed by Barcelona (35%), Tarragona (28%) and Girona (22%).

The Catalan capital is Europe's 8^th most attractive city to invest in and the highest-ranked city located in the southern part of the continent, according to the international consultancy firm Ernst & Young. London, Paris, Berlin, Frankfurt, Amsterdam, Brussels and Munich come first in the European ranking and are followed by the Catalan capital, ahead of Madrid, which comes in 10^th position. EY highlights the fact that Barcelona has attracted "enough" international business projects to confirm its place among Europe's top 10 most attractive cities for foreign investment. Catalonia ended 2014 with 108 direct foreign investment projects, a 27% increase on 2013 figures. These projects created 7,089 new jobs. EY stressed that none of the 7 cities ahead of Barcelona were able to transform direct investment into the creation of so many new jobs. London was the closest contender, creating 3,470 jobs, half of that of the Catalan capital.

Catalan exports totalled €15.66 billion for the period January-March 2015, a 6.6% growth on figures from the 1^st quarter of 2014. This represents a new historic high, setting a new record for Catalonia’s export sector, which has been growing strongly over the last few years. As well as this, exports in March increased by 15.4%, reaching the highest amount ever recorded for a single month. Exports from Catalonia during the first quarter of 2015 represent 25.7% of Spain’s total exports. Regarding Catalonia’s imports, they totalled €18.48 billion, a 4.4% increase. Catalonia’s trade deficit reached €2.82 billion, representing a 6.3% drop on figures from the previous quarter.

On Tuesday, ahead of the United Nations conference on Climate Change to be held in Paris this autumn, Catalonia signed a 'Memorandum of Understanding' in Sacramento (California), together with 11 other US states, Mexican states, Canadian provinces and regional governments. By taking this step, the Catalan Government and the other signatories commit to cut total greenhouse emissions to 80%-95% below 1990 levels by 2050 or to cut per capita emissions to below 2 metric tons during the same timeframe. The 12 founding signatories to the agreement span seven countries and three continents, with a total population of 100 million people and about $4.5 trillion in combined GDP. Apart from Catalonia, the signatories include: California, Vermont, Oregon and Washington (USA); Acre (Brazil); Baden-Württemberg (Germany); Baja California and Jalisco (Mexico); Ontario and British Columbia (Canada); and Wales (UK). More states, nations and cities are expected to join the agreement in the coming months.

The German car manufacturer has announced massive investment in two of its factories in Spain: its plant located in Martorell (Greater Barcelona) and its factory in Navarra. In particular, Volkswagen expressed its intention to invest €4.2 billion between 2015 and 2019 in what many newspapers have called "the largest industrial investment ever made in Spain". According to estimates made by the Catalan Business and Employment Minister Felip Puig, it is likely that more than half of the total investment will be concentrated on the plant in Martorell, which builds Seat cars as well as models from other brands of the Volkswagen group such as Audi. In a meeting with the Spanish Prime Minister Mariano Rajoy, Volkswagen Global Sales Vice President, Javier García Sanz, stated that the two plants that will receive the multibillion investment are among "the best factories of the Group".

House sales in Catalonia have recorded a double-digit growth rate in March compared to the same period last year, official data from the Spanish Statistics Institute (INE) has highlighted. The number of house sales was 4,334 units, which represents a 10.2% annual increase over March 2014 figures. So far, Catalonia has accumulated six consecutive months of positive annual rates for house sales, and all its provinces have followed this trend with the exception of Tarragona. In particular, Barcelona Province stands out with an above-the-average 15.66% annual increase. In Spain as a whole, the number of houses sold in March was 27,280 units, a 2.1% increase in annual terms and the 7^th consecutive month of positive annual rates.

The 38^th edition of the Barcelona International Motor Show kicked off on Thursday, with a session dedicated to journalists and industry professionals. On the first press day of the event, 11 carmakers unveiled some of their new products. In particular, SEAT – the Barcelona-based car manufacturer which forms part of the Volkswagen group – unveiled the new 2015 models of the Ibiza and Alhambra ranges, two world firsts. The Ibiza's new model retains the exterior design of its predecessor but incorporates state-of-the-art technology to allow smartphone use while driving. The International Motor Show will open its doors to the general public on Saturday 9 May, with 38 international brands – 17 more than two years ago, marking a turning point after the darkest moments of the economic crisis.

The Catalan economy has now accumulated 8 consecutive quarters of economic growth, posting a 0.9% increase in GDP between January and March, according to provisional data released on Thursday by the Catalan Finance Ministry and the Catalan Statistics Institute (Idescat). Regarding inter-annual figures, the Catalan economy had grown by 2.4% by the end of the first quarter of 2015 compared to figures from the same period in 2014. These last figures confirm a strengthening of inter-annual growth, since last December it reached 1.9%, and an overall strengthening of the Catalan economy and its recovery from the crisis of the last years. The recovery of the internal demand and the continuing good performance of the export and tourism sectors are the main engines behind the positive figures from the first quarter of 2015. In addition, the industrial sector has been growing for the last 3 years and construction has started to grow again after almost 7 years of continuous decline.