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.
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.
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.
Within the whole Spanish state, property transactions collapse by nearly 41%, while the average value of each house increases every month
Catalonia consolidates its position as the first tourist destination within Spain, with 26% of all visits. International tourism within Catalonia increases in July by 5.1% compared to last year.
The Spanish Government temporary reduces the VAT on new flat’s purchase, asks the largest and profitable companies to advance money from their corporate tax, and obliges doctors to prescribe generic drugs and not brands. With all those measures, the Spanish Government expects to get 4,900 million extra euros until the end of the year.
The data corresponded to the end of June. The Spanish Statistics Institute confirmed the data, proving the prediction by the Bank of Spain of a slowdown in the economy.
During July, inflation rates experienced their third consecutive month of decline. In the last 12 months, the cumulative price increase now stands at 3.2% in Catalonia. The drop of summer sales has helped to lower inflation.
The president of the United States called on Monday evening, the Spanish Prime Minister to discuss the world economic situation, focusing on two main themes, the evolution of debt problems in Europe and the United States, and the growth of world economy.
The Spanish Minister for Public Works, Jose Blanco, attended the end of the drilling works of the High-Speed Train tunnel that will cross Girona, part of the line that will connect with the French border. The Mediterranean Railway Corridor is a long running issues for Catalonia, Valencia, Murcia and Andalucía. It would link the Straights of Gibraltar, the harbours of Barcelona and Valencia, and Central and Northern Europe, allowing a freight train to go from Algeciras or Barcelona directly to Hamburg or Stockholm.
A new study by the Catalan savings bank corrects and improves the previous economic forecast. It is now believed that in 2011, Catalonia will grow at a 1.1% annual rate, and at 1.6% in 2012. However, without the public sector budget cuts, the Catalan economy will grow at 2% this 2011. The export sector has reached historical maximums, and will lead economic growth. However, economic growth in 2011 will not be translated into an improvement in employment.
The Organisation for Economic Cooperation and Development’s Senior Economist for Spain thinks that the Catalan Government’s budget cuts are going “in the right direction”. He also denied that the Autonomous Communities’ deficit puts Spain solvency’s at risk.
The unemployment rate decreased for the third consecutive month. However, last June the reduction was inferior to that experienced in June 2010. June is traditionally a good month for employment figures, because of the high number of tourism-related new contracts.
Sales abroad have been growing at a two-digit rate for 16 consecutive months, being the true engine of the Catalan economy and the main asset towards recuperating economic growth.
The Autonomous Community public debt has increased 26% in the last 12 months and represents now the historic maximum of 11.4% of Spain’s GDP. Spain’s total public debt reached 63.6% of its GDP and totals 679.8 billion euros. The Catalan Government’s debt has reached 34.3 billion euros, 17.2% of Catalonia’s GDP. It raised 33% in the last 12 months, as the Catalan Government’s public deficit was 3.86% in 2010.