economy

American Airlines new direct link between Barcelona-El Prat airport and Chicago is expected to increase the airline's passengers in Catalonia by 15%. The new flight will operate from the 6th of May and will be offered alongside the current flights to Miami and New York. American Airlines also flies seasonally direct from Barcelona to Charlotte and Philadelphia. The Regional Sales Director of American Airlines in Spain and Portugal, José A. Blázquez, confirmed these figures in a press conference this Tuesday in the Catalan capital. Barcelona is a key destination for American tourists, said the U.S. Consul General, Marcos C. Mandojana, who highlighted the growing number of connections from Catalonia to his country.

Foreign investment in Catalonia throughout 2016 totaled €4.8billion, 1.3% less than in 2015. Indeed, 2015 had set a historic record in terms of foreign investment, registering a 57.8% growth in comparison to the previous year. Despite this slight decrease, 2016 represents the second best year in the historic series, according to data published this Tuesday by the Spanish Ministry for Economy, Industry and Competitiveness. Moreover, Catalonia ranks second in terms of foreign investment in Spain, Accounting for 20% of the investment and only surpassed by Madrid, which attracts 46.7% of foreign capital. Regarding Catalan exports, they totaled €5.3 billion in January, the highest figure for this month since 2000. This data confirms Catalonia as the leading territory in Spain in terms of exports followed by Andalusia, whose exports totaled €2.5 billion.

The port of Barcelona closed last year with unprecedented figures. The transport of shipping containers rose by 14.5% with a record figure of 2.2 TEU containers handled. This according to the data presented on Tuesday by the Port President, Sixte Cambra, who said that exports rose by 3.8% while imports increased by 8.7%. The Asian-Oceania market now represents 77% of imports and 43% of exports from the port. In fact, China alone accounts for 43% of the import containers, with a 13% increase during 2016. It is also to China that most of the exporting containers go. The American market represents 25% of exports and 9% of imports from the Port of Barcelona. Catalan exports being handled from the Port of Barcelona are mainly food, equipment and chemicals. Imports are basically textiles, equipment and other manufactured products.

Spain’s call for Catalan leaders to attend the upcoming Autonomous Communities’ summits to discuss regional policies has not changed the Government’s plan for the meetings. The Catalan Vice President and Catalan Minister for Economy and Tax Office, Oriol Junqueras, have refused to attend the Council on Fiscal and Financial Policies (CPFF, going by its Catalan initials) this Thursday, citing other political commitments. Catalan Secretary of Economy, Pere Aragonès, will go instead. For his part, Catalan President, Carles Puigdemont, has already announced he will not attend the Conference of Presidents convened by the Spanish President, Mariano Rajoy, for the 17th of January. “Catalonia has won the right to a bilateral relationship as the demands of the Catalan people have nothing to do with the requests of other Autonomous Communities”, Puigdemont said in October, when he announced that he would not be attending the conference.

The support of 2 MPs from radical left pro-independence CUP, the main partner of governing cross party 'Junts Pel Sï', allowed the budget for 2017 to overcome the appeals presented by the oppoistion groups in the Parliament. Catalan Vice President and Minister for Economy and Tax Office, Oriol Junqueras, defended this Tuesday the budget for 2017. According to Junqueras, the draft especially focuses on “fiscal justice” and social expenditure, which he defined as fundamental pillars for economic growth. “We have many difficulties and many more are being put in our way, but it is clear that our economy and our society are capable of making it through”, he stated on the first day of the two-day session during which the Parliament will vote on the budget for 2017. “This is the best budget possible”, he assured in November, right after presenting the bill to the Parliament’s Bureau and emphasised the social orientation of the draft budget. Indeed, more than 74% of the total bill for 2017 is allocated for social expenditure and €1.1 billion more has been allocated for this purpose in comparison to the budget for 2015, which had to be extended for 2016.

The Catalan Vice President and Minister for Economy and Tax Office, Oriol Junqueras, voted against the new regional deficit target of 0.6% of GDP agreed between the Conservative People’s Party (PP) and the Spanish Socialists (PSOE). During the Council on Fiscal and Financial Policies (CPFF, going by its Catalan initials) on Thursday evening, Junqueras said that the target is “absolutely far from what citizens need and deserve”. The Catalan Government had asked for a 1.18% deficit target for 2017, but the Autonomous Communities’ limits were set instead at 0.6% for next year, 0.3% for 2018 and 0% of GDP for 2019. They were accepted despite the opposition of Catalonia, the Balearic Islands and Valencia. The communities led by the PSOE abstained. The Spanish Finance Minister, Cristóbal Montoro, celebrated the fact that only three territories voted against the measure, saying there was a “good atmosphere” at the meeting.

The Government’s draft for the 2017 budget was published in the Parliament’s Official Journal this Tuesday. On Wednesday, the different groups in the Catalan Chamber will be able to present appeals and the whole bill will be discussed on the 20th of December. “This is the best budget possible”, Catalan Vice President and Minister for Economy and Tax Office, Oriol Junqueras, stated right after presenting the draft. “The time of cutbacks is over”, he assured and emphasised that the budget for 2017 has been enhanced in comparison to the previous one “both as a whole and in each department”. Indeed, the budget for 2017 allocates €1.1 billion more to social expenditure than the bill for 2015 – which was extended for 2016. The Health System with €8.7 billion and Education and Universities with €5.5 billion are the areas with the highest amounts allocated.

The Government’s draft budget for 2017 presented to the Parliament's President, Carme Forcadell, this Tuesday includes an allocation of €5.8 million to guarantee that the pro-independence referendum scheduled for September will be carried out. In particular, the bill establishes €5 million for electoral processes and €0.8 million for participation. Moreover, the budget also includes hidden allocations which would allow the referendum to take place despite the inevitable suspension of the Spanish Constitutional Court (TC). In 2014, the budget also allocated €6 million oriented toward holding the 9-N symbolic vote in independence. At that time, the allocation was included within the Public Administrations department. However, this time the allocation would be an explicit competence of the Catalan Ministry for Economy and Tax Office. 

The Catalan Ministry for Economy and Tax Office presented this Wednesday the data of the macroeconomic chart to be included in the budget for 2017, which the Catalan executive expects to pass next week.  According to this document, the Catalan economy’s expected growth will be 3.4%, 0.5% more than the growth forecast for the Spanish economy, which is expected to be 2.9%. Regarding 2017, the chart keeps the figure released last May which foresaw 2.7% growth. According to the Catalan Vice-president and Minister for Economy and Tax Office, Oriol Junqueras, this figure is “considerably higher” than the expected growth for the Eurozone (1.5%). The budget for 2017 also foresees the creation of 160,000 jobs between 2016 and 2017. 

According to a study released this Thursday by the Catalan Ministry for Economy and Tax Office, the “autonomic framework” does not leave “enough room” to cope with poverty and inequality in Catalonia. ‘Economy note 103: Analysis and tools to tackle poverty and inequality’, a report that includes 19 extensive articles from around 30 experts, technicians and academics, stresses that the scope of the Catalan Government’s public policies is limited by “the restrictions on powers and availability of income of the current autonomic framework”. In the same vein, Catalan Vice President and Catalan Minister for Economy and Tax Office, Oriol Junqueras, said that this situation has forced him to prepare a budget for next year “that is neither the one Catalans deserve nor what they need” because it does not correspond to the “economic and fiscal effort” made by the citizens.

In annual terms, the Catalan economy grew by 3.3% in the third quarter of 2016 according to official data released this week by the Catalan Ministry for Economy and Tax Office and the Statistical Institute of Catalonia (Idescat). This increase is mainly thanks to the boost provided by the services sector, which saw annual growth of 3%, and the acceleration of the industrial sector, whose growth stood at 4.9%, the highest for the last six years. The quarterly growth rate, however, stood at 0.7%, one tenth lower rise than the previous quarter, but four percentage points above the Eurozone average. According to the data, there is a slight slowdown in the expansion of the Catalan economy, as annual growth in the first and second quarter of this year were 3.7% and 3.5%, respectively.  

The Financial Times report FDi European Cities and Regions of the future 2016/2017, recognised Catalonia as the best Southern European region to invest in for 2016 and 2017. To make the most of this prognosis, the Catalan Minister for Business and Knowledge, Jordi Baiget, visited London this Monday, in the framework of the 'Brexit' plan, which aims to promote foreign investment in Catalonia and strengthen trade relations with the United Kingdom. At a meeting with thirty businessmen and international investors at the headquarters of the newspaper the Financial Times, Baiget explained that that there is "no anxiety" among investors regarding the political process going on in Catalonia, but rather only "interest". Furthermore, the Catalan Minister stressed that investors really value “Catalonia’s assets”, such as its “good communications and trained and qualified people”. 

In August, Catalan exports increased by 13.8% over the same period in 2015, reaching €4.5188 billion and setting a new record as the 'best August’ ever registered (since the collection of data began). According to figures published this Thursday by the Spanish Ministry for the Economy and Competitiveness, Catalonia’s exports of goods abroad accounted for 25.6% of the total sales in Spain. The increase of Catalan exports was higher than the EU average (+12%) and well above that of countries such as France (+2.3%) and the UK (+1.2%). However, this increase was lower than that of countries such as Germany (+14.2%) and Italy (+29.4%). Spanish exports also rose (by 8.9%), totalling €17.646 billion.

The number of people unemployed and registered as such at the Catalan Public Employment Service (SOC) at the end of September increased by 5,641 people compared to the August figures, a growth of 1.27%, according to data released on Tuesday by the Spanish Employment Ministry. In total, last month there were 451,081 jobseekers. In annual terms, there are 62,106 less people on the SOC lists, a 12.1% drop in comparison to September 2015. In the whole of Spain, unemployment increased by 22,801 people in September and the number of people officially registered as jobseekers reached 3,720,297 individuals. However, within the last 12 months, unemployment in Spain decreased by 373,745 individuals, a 9.13% improvement over September 2015.

Catalonia has the “cultural capital” and the “knowledge” to promote a new model of production, more sustainable than the “obsolete” one. This is the main conclusion of a lecture given at the conference “A new Economic Paradigm for a Sustainable Catalonia’ by economist Jeremy Rifkin organized on Wednesday in Sant Cugat, a city near Barcelona, by the Public Diplomacy Council of Catalonia (Diplocat). According to the sociologist and political advisor, Catalonia has the potential to “lead the way of Regional Europe” to the ‘Third Industrial Revolution’. Rifkin predicts an economic paradigm shift as a result of two merging factors: Internet technology and renewable energies, which will create a powerful Third Industrial Revolution where people will produce their own green energy and will share it on a sort of “Energy Internet”, in the same way we share information today.