economy

Employers’ association CECOT's president, Antoni Abad, warned of the economic "instability" that political "stagnation" may cause and expressed his "wish" for Catalonia to constitute a new government "as soon as possible". "We can't continue like this" he stated "98% of CECOT associates refuse the status quo". Abad made these statements this Wednesday at a meeting with Parliament's President, Carme Forcadell, whom in turn assured that she is "hopeful" regarding pro-independence forces 'Junts Pel Sí' and CUP’s negotiations. Abad also asked the government to "facilitate" growth of the Catalan business sector and improve its funding system. CECOT's president also confirmed to Forcadell that Catalonia's economy is recovering in terms of employment and internationalisation capability.

The Catalan project 'Guifi.net', based on an open Internet, was amongst the five winners at the first edition of the European Broadband Awards. It was awarded best project in the category on innovative model of financing, business and investment. 'Guifi.net' was founded in 2004 and aimed to connect those rural areas in Catalonia and in the rest of the Iberian Peninsula which had difficulties getting a good Internet service. Now, it is present in more than 30,000 homes. Its president, Ramon Roca, regarded the prize as “a recognition of more than 12 years of hard work”. A total of 48 projects from 17 Member States took part in the European Broadband Award’s competition, an initiative aiming to identify the five best projects of high-speed broadband networks – the so-called Next Generation Networks (NGN) delivering at least 30 Mbps in urban, suburban and rural areas.

The number of jobless people in Catalonia at the end of the third quarter stood at 659,600, which means 66,500 less than in the same period last year. The 17.49% unemployment rate is the lowest in the last five years, according to the Active Population Survey (EPA) published this Thursday by the Spanish Institute of Statistics (INE). Catalonia is the Autonomous Community which led job creation in Spain:between July and September, 35,800 jobs were created, mainly in the service sector, due to seasonal contracts. In Spain as a whole, unemployment fell by nearly 300,000 people and 182,000 new jobs were created. The overall number of jobless people in Spain now stands at 4.8 million, a figure that hasn't been registered in the last four years and is below the 5 million  psychological barrier. 

The President of the European Commission, Jean-Claude Juncker assured that he is for a "unified Europe" and against facing "more divisions" in Europe. "We won't accept divisions in Europe anymore. We already suffered a lot during the Second World War, after the war and during the Cold War". Juncker made these statements this morning at an event in Madrid, just before attending the European People's Party meeting that will be held in the Spanish capital and that is set to pass a declaration in defence of the unity of the EU's Member States. Juncker emphasised that "Spain is not a compilation of divisions and compartments, but a coherent set" and took the chance to support Spanish Prime Minister Mariano Rajoy's administration as head of the Spanish executive. 

The Bank of Spain Govenror, Luis Maria Linde, corrected his previous statement and admitted that “freezing bank accounts” if Catalonia becomes an independent country is a very “improbable, almost impossible” situation. Linde’s clarification comes after his statements last week assuring that Catalonia would face a ‘corralito’ in the event of independence. He added this Wednesday that he wasn’t “that worried” about this possibility nor is “anybody else in Europe”. Following Linde’s warning, a group of six prestigious economists asked for the Governor’s resignation and recalled that Linde’s task should be “promoting financial stability” rather than “influencing thevoters’ decisions”.

During the second trimester of 2015, foreign investment in Catalonia grew by some 422%, reaching €1,302 million. “We have grown more than ever and we have become a point of reference in Europe” stated Catalan Minister for Business and Employment, Felip Puig. “These results show the world how diversified and solid our economy is” he added. During the first trimester this year, Catalonia was the leading region in Continental Western Europe in terms of investment, both in total amount of investments attracted and in the amount of jobs generated. This growth is much higher than the Spanish average; foreign investment in Spain in the second trimester of 2015 was only 73% higher than that recorded during the same period last year. 

Catalan exports grew 7.4% in July and exceeded the €6,000 million barrier for the first time. The total figure was €6,086.30 million and the 4 regions in Catalonia (Barcelona, Girona, Tarragona and Lleida), all obtained positive results, according to the Spanish Ministry of Economy and Competitiveness. Sales increased in the leading export sectors, which involve chemical, automotive and capital goods, with the automotive sector recording the highest increase, up 18.2% compared to last July. Since the beginning of this year, every month has recorded the best performance in export volume and if this trend keeps up, 2015 will be a  record year. In Spain as a whole, exports in July were worth 148,000 million euros, the best month ever recorded.

The Spanish Bank Association (AEB in Spanish) and the Spanish Confederation of Saving Banks (CECA in Spanish) warned about the “risks” of Catalonia’s independence. In an official announcement made this Friday, both associations assured that all banks with a presence in Catalonia “would face severe problems of judicial insecurity” in the event of a Unilateral Declaration of Independence after the 27-S elections. They outlined that “any political decision which would imply breaking the rules in force” would result in “exclusion from the EU and the Eurozone” for Catalonia. The Catalan Finance Minister, Andreu Mas-Colell, described the Spanish government as “being irresponsible” for pushing the banking sector to be against the independence of Catalonia. He regretted that such “a delicate sector” was used as an “artillery weapon”. 

The Catalan bank Sabadell has completed the process of compulsory acquisition of all TSB Banking Group (TSB) shares, thereby taking ownership of 100% of this British entity’s share capital. The move completes the takeover started last spring, when TSB accepted the 1.7bn-pound offer made by Banc Sabadell. Through buying TSB, Banc Sabadell has expanded its international presence, with its percentage of foreign assets growing from 5% to 22%. TSB has 631 branches, 4.6 million customers and 8,600 employees in the United Kingdom.

Catalan companies sold abroad some €31,899.9 million worth of goods and services between January and June this year, which represents a 7.16% increase on the figures from the first six months of 2014, according to information released on Tuesday by the Spanish Ministry for the Economy and Competitiveness. Catalan exports have never before reached such a high sales volume for a six-month period. Not only this, the level of international sales registered during June alone also broke all previous records for this month, coming in at €5,662.1 million. Indeed, almost month after month Catalonia's export records were broken during the first half of this year and the Catalan economy has seen exports rocket during the last 3 years. In Spain as a whole, international sales have also broken all previous records in the first half of 2015, reaching 125,122.9 million, a 4.9% growth on figures from the first 6 months of 2014. Thus, the Catalan economy generated 25.49% of Spain's total exports, while representing 19% of its GDP and 16% of its population.

The Port of Barcelona has been opening new regular routes for container transportation in the last few months, improving the connections with strategic markets in the Americas, Asia, West Africa and the Mediterranean area. An example of this trend is the new route served by MNM African Shipping Line, a company founded this year based in the port of Tanger-Med and working for transport and logistics firms from Morocco and Nigeria. This new line will be using vessels with a 2,500 TEU container capacity to connect the Catalan capital with major ports in North and West Africa such as Tangier, Casablanca, Agadir, Nouakchott, Dakar, Conakry, Lagos, Tema and Abidjan, covering an area with some 300 million people.

Catalonia’s annual inflation rate increased from a rate of 0.3% in June to 0.4% in July, according to information released on Thursday by the Spanish Statistics Institute (INE). This is the highest yearly rate since June 2014, when prices also increased 0.4% compared to the previous year. In Spain as a whole, annual inflation continued at the 0.1% rate registered in June. Therefore, deflation is gradually being left behind, although price increases are still at a low level, mostly due to the continuing low price of fuel on the global market. However, in monthly terms, prices declined by 0.8% in Catalonia, mainly owing to a 13.3% drop in the price of retail goods due to seasonal sales, but also because of a 0.5% drop in the price of fruits and vegetables. The increase in housing rentals, communications and entertainment, mostly travel industry, have not been able to compensate for the aforementioned declining prices in monthly terms.

The Catalan GDP increased by 0.9% between April and June this year, which is a positive figure but slightly lower than the 1.1% rate registered during the first quarter. However, in annual terms, the Catalan economy grew by 3% in the year to June, which is more than the 2.6% annual growth registered in March. Such a high level of annual growth had not been registered since September 2007, before the financial crisis started. According to the Catalan Finance Ministry, the minor fall off in growth registered between April and June compared to the growth rate from January to March is due to the "extraordinary" 1.1% growth rate of the first quarter. The Ministry stressed that 0.9% growth is still a very positive rate and does not break the trend of the economic recovery, on the contrary proving its strength.

Real estate continues its positive trend and is gradually leaving behind the crisis the sector went through between 2008 and 2014. Housing sales have grown in Catalonia for the 9^th consecutive month in annual terms. This week, the Spanish Statistics Institute (INE) released the sales figures for the month of June 2015 and they show an 8.15% growth in Catalonia compared to June last year. It is the best figure for the month of June since 2010. Previously-owned properties are leading the market by a clear margin, with only 15% of sales being new builds. In Spain as a whole, housing sales have already seen 10 consecutive months of growth. In June, they increased by 17% on last year’s figures, with 78.3% of the properties sold having been previously owned.

Registered unemployment decreased in Catalonia by 9,162 people in July compared to the previous month, the third-biggest drop for the month of July since 1996. The total number of people registered as unemployed with Catalonia’s Public Employment Service (SOC) at the end of the month was 501,785 individuals, which represents an 11.69% drop in annual terms, the highest percentage decrease since April 2000 (when registered unemployment dropped 11.94% compared to 1999 figures). In addition, the figures from July mean that there have now been 25 consecutive months of annual drops in the number of unemployed in Catalonia. As well as this, the total number of Catalans without a job and looking for one at the end of last month was the lowest  since July 2009 (when there were 495,911 jobless people). In Spain as a whole, registered unemployment decreased by 74,028 people from June to July, which represents an 8.45% annual drop and is Spain’s most significant decrease for the month of July since 1998.