spanish economy

By the end of last month, 14,829 fewer people were registered at the Catalan Public Employment Service, which leaves the total number of registered jobseekers at 642,166 individuals. This represents a 2.26% drop compared to the figures from April, meaning that registered unemployment decreased in Catalonia for the last three consecutive months. May is a month when unemployment tends to drop thanks to temporary summer jobs, mostly related to the tourism industry. In the whole of Spain, unemployment decreased by 1.97% in May, with 98,265 fewer people registered as unemployed. This leaves the total number of people registered as being without a job and looking for one at 4,890,928 individuals in Spain. The Catalan Government welcomes “the positive horizon” shown by the May figures but it considered them to be “insufficient” as yet.

In March, 2,750 flats and houses were sold in Catalonia, 13.9% less than a year ago in the same month. 32.5% were newly built homes and 67.5% were second hand ones. The previous worst month of the economic crisis had been December 2011, when 2,778 housing units were sold. However, the results from March represent the lowest level of housing sales since January 2007. The reasons behind this drop are the economic recession and the crisis of the real estate sector. In the whole of Spain, housing sales dropped by 12.6% compared to a year ago, with 22,086 flats and houses sold. However, at a Spanish level, the worst month in the last few years is still April 2012, when 21,551 housing units were sold.

Catalonia’s GDP decreased by 0.3% between January and March 2013, while the Spanish economy dropped by 0.7% in the same period. The Catalan figure represents a more gentle drop compared to the last quarter of 2012, when the Catalan economy plummeted by 0.7%. However, looking at the annual figures, results from March 2013 represent a 1.9% drop compared to March 2012. Exports and tourism are the main economic engines. However, the improvement is also due to the fact that domestic consumption continued to post negative figures but they were still better than in the previous months. The data are early estimations calculated by the Catalan Statistics Institute (Ideascat) and the Catalan Economy Ministry, released on Friday.

By the end of March, unemployment in the whole of Spain set a new historical record high with a rate of 27.16% and more than 6.2 million people being without a job and looking for a new one. This represented a quarterly increase of 237,400 individuals and a yearly growth of 563,200 people. In Catalonia, 902,300 people were unemployed by the end of March, 17,100 more individuals than three months previously and 65,300 more than a year ago. This sets a new historical record high for Catalonia too, breaking the previous one just set three months ago with a rate of 23.9% unemployment by the end of 2012. Unemployment increased throughout Catalonia except in the western Lleida province where it has been decreasing over the last year.

47 foreign investment industrial projects, bringing in €331.88 million, landed in Catalonia last year through ‘Invest in Catalonia’, a programme from the Catalan Government. This represents 37% more investments than in 2011. The projects created 2,324 new jobs and they also allowed companies to keep 2,566 positions. Besides, the Spanish Ministry for the Economy stated that foreign investment in Spain dropped by 43% in total and by 14% in Catalonia. The Catalan Business Minister, Felip Puig, explained that the Spanish Ministry data includes financial investments. However, Puig emphasised that the Spanish Ministry’s report also states that industrial and manufacturing investments in Catalonia increased by 6.2% and 11% respectively.

54% of Catalonia’s external sales go to the international market while the remaining 46% go to the rest of Spain. The number of Catalan companies which sold their products outside of Spain in 2012 was 45,000 enterprises, representing a 6.3% increase in relation to the 2011 figures and 11,554 more companies than at the start of the economic crisis. The export sector represented €58.28 billion, which was 28% of Catalonia’s GDP in 2012. The figure represented a 5% increase compared to 2011 and a 15% growth on data from before the economic crisis. Sales outside the European Union increased by 16% last year, especially in Oceania (61%), Africa (24%) and Latin America (21%).

According to the Spanish Statistics Institute (INE), the Catalan GDP fell by 1% last year. However, according to the Catalan Statistics Institute (Idescat), it dropped by 1.3%. Regarding Spain’s economy, the INE declared that it fell by 1.4% while the Idescat indicates it plummeted by 1.9%. The reason for these differences is that data from both institutes are based on estimates and are still provisional. In any case, Catalonia is one of the Autonomous Communities with the mildest recession in Spain and continues to be that with the highest GDP, €198.63 billion. In addition, Catalonia is among those with the highest GDP per capita, set at €27,248 while the Spanish average was €22,772.

Multinational companies, railway operators, port authorities and government representatives met in the European Parliament to demand a boost of goods transportation by rail in Europe. They are pushing for the use of longer and heavier trains, able to transport more goods at a lower cost, with the consequent increase in competitiveness. These trains would circulate along specific corridors, such as the Mediterranean Railway Corridor, which will link the Gibraltar area with Central and Northern Europe passing through Spain’s Mediterranean ports and main industrial centres. The lobby organising the event, FERRMED, complained about the absence of representatives from the Spanish Government’s train operators.

The number of people unemployed and registered as such by the end of February at the Catalan Public Employment Service (SOC) increased by 3,359 people compared to the January figures. This is the lowest unemployment increase registered in the month of February in the last six years. In total, there were 661,176 people in Catalonia who were without a job and were looking for a new one. This sets a new historical record, with 23,228 more people unemployed than a year ago, representing a 3.62% increase. In the whole of Spain, unemployment increased by 59,444 people in February and for the first time the number of people officially registered as jobseekers topped 5 million individuals. Within the last 12 months, unemployment in Spain increased by 328,124 individuals, 6.96% more than those registered in February 2012.

Economic recession hit Catalonia even harder in 2012 than in 2011, when it dropped by 0.7%. The contraction was especially severe in the last quarter of the year. In December, Catalonia’s GDP plummeted by 0.6% compared to 3 months previously. The fourth quarter’s poor figures made the Catalan economy contract by 1.3% over 2012. In 2011, it also decreased but at a slower pace, dropping by 0.7%. For the whole of Spain, the economy plummeted by 1.8% in 2012 and by 0.7% over the last quarter of the year, compared to the figures from September 2012. The main reason behind the last quarter’s drop is the decrease in consumption by families, compared to the purchases made in the third quarter, before the VAT increase.

The 2,885 housing units sold in Catalonia during December increased by 4% compared to the figures from a year ago. The main reason for this rise is that, in January, the Spanish Government’s tax benefits applied when purchasing a house – approved to reactivate this economic sector after the collapse of the real estate market – will no longer exist. 66% of the houses and apartments sold were second hand, while the other third were newly built. For the whole of Spain, housing sales increased by 2.3% in December. In 2012, house sales dropped by 11.3% over 2012.

The economic recession has meant that Catalonia’s industrial production index decreased by 2.7% last year, according to the Spanish Statistics Institute (INE). In addition, the note indicated that the Catalan industrial sector has contracted for the last 10 consecutive months. However, Catalan industry had been less affected than the Spanish average, which plummeted by 5.9% in 2012. One severely affected sector was the production of long-life goods, in which car manufacturers are included, which decreased by 7.1% in December, accumulating 28 consecutive months in the red. Another sector with problems is the means of production, with a 7.3% decrease in December and 11 consecutive months of accumulated drops.

The number of unemployed people had reached 885,000 individuals by the end of 2012, a record high, with 110,000 more jobseekers than a year ago. This means that Catalonia’s unemployment rate increased from 20.5% to 23.9% in the last twelve months, breaking the previous record of 22.8% from the third quarter of 1985. In the whole of Spain, unemployment reached a rate of 26%, while a year ago it was 22.85%. It increased by 13.1% over the last twelve months, adding 691,700 more jobseekers to the list. Spain reached a historical high of 5.97 million people being unemployed.

Combined with the salary reductions and the taxation increase, the rise in inflation means that Catalans have lost purchasing power. The spending of the average Catalan family increased by some 110 euros per month compared to 2011 in order to buy the same amount of goods and services, while the net revenue decreased. In the whole of Spain, the inflation rate for the last 12 months was 2.9%, affected by the VAT increase approved by the Spanish Government. In Catalonia, it was higher due to fees adopted by the Catalan Government in order to reduce the public deficit: namely those affecting drug prescriptions and university education.

The debt of Spanish families has been reduced by 4% compared to July 2011, reaching €848.4 billion by the end of July 2012. 77% of this family debt is related to real estate loans. Private companies passed from a global debt of €863.9 billion in July 2011 to a debt of €804.2 billion a year later.