gdp

Government to launch a minimum wage, although it has no powers to make it binding

Pace slightly below previous years, but continues an upwards trend for fifth year

Country’s GDP up by 2% so far this year, with a slight slowdown between July and September

Estimation would mean continuing trend of GDP increase, higher than Spanish and EU average

Economy remains strong despite slight decline from previous higher figures

Government adjusts forecast upward with economy expected to outgrow average in Spain and Eurozone

Bank of Spain increases 2018 growth forecast to 2.7%

The Catalan Minister of Economy and Finance, Oriol Junqueras, defended the good health of the Catalan economy on Friday and insisted on the Catalan executive’s commitment to continue within the European Union in case of independence. At the 33th Annual Meeting of the Economy Circle in Sitges, Junqueras confirmed that his executive expects to surpass 2.7% of annual economic growth and highlighted the fact that Catalonia account for 85% of the deficit reduction of all administrations in Spain. The Catalan minister also used the opportunity to communicate a message of calm to the economic sector, guaranteeing that “Catalonia will not leave the EU in case of independence” since there is “absolutely no legal mechanism that foresees this case”. Along this line, Junqueras stressed the “firm pro-European commitment” of the Catalan government and its determination of “strengthening” a common project and creating “excellent relationships” with neighbors, “especially Spain”. In this case, however, like “two states with the same powers”.

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. 

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.  

Catalonia would be the eleventh country in the EU in terms of exports if it were to become independent, and would be ahead of Austria, Denmark and Finland. Catalan companies’ exports to the rest of Spain and to the whole of the EU represent 47.7% of Catalonia's GDP, which is 14 percentage points higher than the EU average (33.2%). 2015 marked a new record for Catalan exports, reaching 102,487 million euros and Catalan companies which export regularly already represent 34.4% of the Spanish figure overall. Regarding exports per capita, an independent Catalonia will rank ninth, with 13,650 euros, ahead of France, United Kingdom and Portugal. These figures were released by the public business competitiveness and internationalisation agency, ACCIÓ.   

Catalonia's GDP increased by 3.5% between June 2014 and June 2015 and was the Autonomous Community with the third-highest level of economic growth, leading Spain's economic recovery.  Spain as a whole grew at a 3.1% annual rate in the same period, according to figures released on Thursday by the Spanish Independent Fiscal Authority (Airef). Ahead of Catalonia in terms of GDP growth are the Balearic Islands – with 4% growth – and the Valencian Country (also called Valencian Community) – with growth of 3.9%. They are followed by Catalonia (3.5%), the Canary Islands (3.4%) and the Madrid region (3.2%). According to these figures, the eastern part of Spain has been the most dynamic during the last few months, and Catalonia, which is the wealthiest Autonomous Community and has one of the highest growth rates, is the region contributing the most in absolute terms.

The Brussels-based Centre for European Policy Studies (CEPS) and Barcelona-based Centre for International Affairs (CIDOB) think tanks, together with an Italian and a Greek research centre, have presented a report stating that the economy of an independent Catalonia would grow more in the next 15 years than if the current 'status quo' was kept. The study analyses 3 different scenarios: the current model, an agreed independence process and a unilateral declaration of independence. In either case of independence, the Catalan economy would be in better shape in the long-run than if the current framework was kept, the researchers conclude. However, in the event of a unilateral process, there may be negative economic effects in the short-term, mostly due to uncertainties related to EU Membership. Nonetheless, they consider the current inter-territorial fiscal scheme – imposed by the Spanish Government – "unsustainable at macroeconomic level" for Catalonia.

"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.

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.