Business

The Catalan multinational company will provide Gail, the largest gas distributor in India, around 3 bcm of liquefied natural gas for three years. This quantity represents 10% of Spain’s annual gas consumption. Gas Natural Fenosa refused to disclose the value of the contract, but sources from the sector estimate it would be worth more than €1 billion. This would be the largest contract in Asia for this Barcelona-based company, which has a significant presence in South America.

The Damm Group, manufacturer of the popular Catalan beer brand Estrella, had a turnover of 421 million in the first six months of 2012, a 8.5% increase in relation to the same period last year. The company is not making any predictions for the second half of the year due to the uncertainty over the VAT increase but has stated that sales over the past weeks have “evolved satisfactorily”.

The expansion to Brazil is part of the company’s international development plan, which aims to start operations in Latin America, the Middle East and Asia. The company hopes to replicate its successful European business model overseas and has started with the opening of new offices in São Paulo. Galenicum, a developer of generic medicines, is based in Barcelona and produced a turnover of €77 million in 2011, a 542% increase in just two years.

50.2% of the people travelling between Barcelona and Madrid in the first six months of the year used the High Speed Train (AVE), instead of the car, bus or airplane. 1.4 million people used this AVE line between January and June, a 6.2% increase compared to the same period last year. In addition, the Port of Barcelona had 905,000 passengers in the first half of 2012, making it the first port in Spain in terms of passenger traffic.

Foreign tourism in Catalonia continues to flourish despite the economic crisis. In July, there have been just over two million foreign tourists to Catalonia, 9% more than in the same month of 2011. In the first seven months of 2012, Catalonia hosted 8.4 million foreign tourists, a figure which represents 25.6% of international tourism to Spain. Catalonia has therefore consolidated its position as the most visited tourist destination in Spain.

The economic crisis hits Catalan industrial areas. In Catalonia there is a total of 35,000 hectares of industrial plots of land. Up to 40% of this surface has no use after four consecutive years of losing activity, and during this time there have been more industrial buildings closing than opening.

The numbers of foreign workers contributing to Social Security in Catalonia reached 400,075 people at the end of July. This figure represents a 2.11% increase compared to a month ago. Seasonal work related to tourism and fruit harvesting caused the number of non-EU workers increase by more than 8,000 people over July.

With 5.13 billion in foreign sales in June, Catalan exports have grown by 6.6% over the same period in 2011. Amongst the Autonomous Communities, Catalonia ranks first for its export economy, in the first six months of this year Catalan companies sold up to €29.1 billion abroad. The increase in foreign exports and the fall in imports have reduced the trade deficit by 31% in the first six months of this year.

The Catalan Government’s drug prescription fee and the Spanish Executive’s decision to make citizens pay for a greater share of prescribed drugs have had an effect on inflation. The price of pharmaceutical products has had its highest increase since at least 2003.

The Catalan bank, which leads the Spanish market, increases its share in the Portuguese Investment Bank by 7 percentage points increasing its stake from 39.5% to 46.22%. CaixaBank purchased just over 251 million shares in the capital increase offered by the Portuguese financial entity, at a cost of €125 million. Caixabank had already said it would extend its share in the BPI.

The Director General of the Catalan fashion retailer, Enric Casi, had already warned that the MANGO's profits in 2011 would be lower than usual due to its extensive investments and expansions abroad. In 2012, the company expects a profit of €200 million due to the investments and has already seen positive results for the first months of this year. The successful multinational was founded in Barcelona in 1984 and has over 2,400 outlets in 107 countries and over 11,000 employees.

The Catalan savings bank, which the Bank of Spain intervened in last September, is selling part of its real estate stock. During the first seven months of 2012, the bank has commercialised 6,700 housing units, 40% more than last year’s same period. Around 90% were sold and the rest were rented. 56% were newly built houses and 44% were second hand properties. Regarding the location, 54% were in Catalonia, 12% in Valencia, 12% in Andalusia and 8% in Madrid.

House sales maintain a decline as results show that sales have fallen by 19% in first half of 2012. Despite the negative overall trend, Lleida and Tarragona saw a boost in sales last month, making up for the reduction in sales experienced in Barcelona and Girona, culminating in a 2.7% overall increase in sales this June for Catalonia. In Spain, the fall in the first half of the year was 21% and in June, in contrast to the increase Catalonia, there was a fall of 11.2% compared with June 2011.

The Catalan highway, transport and telecommunication management company Abertis has accepted Tagus’ takeover of its shares in Brisa, which represent 15.02% of the Portuguese highway company. Abertis now wants to focus on projects that represent added value for its global strategic action. In addition, two days ago, Abertis’ board ratified last April’s agreement to acquire 9 highway concessions from OHL in Brazil. With this operation, the Catalan company becomes the largest group in the world managing highways, with more than 7,000 kilometres worldwide.

According to a report by the trade union CCOO, with the Spanish Government’s last budget adjustment, after the sixth month of being unemployed people will no longer receive an average of €222 per month. The report points out that people aged between 45 and 55 will be the most affected since many are in a long-term unemployment situation and will no longer qualify to receive any subsidies. Cristina Faciaben from the CCOO is convinced that the last series of measures to reduce the public deficit will not achieve its objective, and on the contrary will lead to a worsening of the economic crisis.