Business

Prices went up by 1% in October, in comparison to September, and left the annual inflation rate in Catalonia at 0.9%, according to the definitive data released on Tuesday by the Spanish National Institute of Statistics (INE). The products that influenced the increase in prices most were the clothing and footwear sector, due to the start of the winter season, and the price of electricity and fuel – both rose in October this year, while they decreased in the same month of 2015. The inflation rate at the end of October is the highest registered since August 2013, when it reached 1.7%, and confirms an upward trend that has now lasted for three months. 

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.  

The Financial Times report FDi European Cities and Regions of the future 2016/2017, recognised Catalonia as the best Southern European region to invest in for 2016 and 2017. To make the most of this prognosis, the Catalan Minister for Business and Knowledge, Jordi Baiget, visited London this Monday, in the framework of the 'Brexit' plan, which aims to promote foreign investment in Catalonia and strengthen trade relations with the United Kingdom. At a meeting with thirty businessmen and international investors at the headquarters of the newspaper the Financial Times, Baiget explained that that there is "no anxiety" among investors regarding the political process going on in Catalonia, but rather only "interest". Furthermore, the Catalan Minister stressed that investors really value “Catalonia’s assets”, such as its “good communications and trained and qualified people”. 

Barcelona’s Chamber of Commerce reported this Thursday that 2015 was the worst year in the historical data series, which dates back to 1997, in the rate of state investment in the transport infrastructure in Catalonia. Specifically, the Spanish Government executed only 59% of the budgeted investment in Catalonia, below the average of all the Spanish Autonomous Communities, which stood at 72%. The president of the Chamber, Miquel Valls, lamented in a press conference that the low degree of implementation of investment occurs on an initial budget which is already relatively small for Catalonia. Last year, the Spanish executive budgeted for the region 9.9% of total state investment in transport infrastructure, despite the Catalan GDP accounting for 18.9% of the state’s overall GDP.

The number of people unemployed and registered as such at the Catalan Public Employment Service (SOC) at the end of October increased by 7,325 peoplecompared to the September figures, a growth of 1.62%, according to data released on Monday by the Spanish Ministry for Employment. In total, there were 458,406 individuals who were without a job and were looking for a new one. In the whole of Spain, unemployment increased by 44,685 people in October, which means that the total number of jobseekers registered on the Public Employment Service’s lists reached 3,764,982. Within the last 12 months, unemployment in Spain fell by 411,387individuals, 9.85% less than last year.The construction sector is the only area where unemployment decreased in both Catalonia and Spain. 

The Barcelona-based energy company Gas Natural Fenosa, through its subsidiary Global Power Generation (GPG), has signed an agreement to acquire a majority stake of 85% in two solar plants in Brazil from Gransolar Group. The operation will involve an investment of €85 million to implement their first power generation project in the Brazilian market. The production of these two facilities will be about 154 GWh a year. With this agreement, and the construction of a 91 MW plant in Australia announced last August, the holding company GPG Gas Natural Fenosa has already exceeded the target of energy production set for 2018 in its strategic plan.

CaixaBank, Catalonia's largest financial group and one of the most significant companies in the whole of Spain, reported this Friday net attributable profit of €970 million for the first nine months of 2016, down 2.6% on the same period of 2015, which included a number of one-off impacts associated with the integration of Barclays Bank, SAU. Pre-tax profit amounted to €1,314 million, up 45.2% in comparison to last year.  Impairment losses on financial assets and others totalled €1,177 million, a 33.3% decreased in comparison to last year on account of the reduction in loan-loss provisions.

The number of unemployed people in Catalonia dropped to 552,500 people in the third quarter of 2016, representing a decrease of 51,100 people in relation to the second quarter, according to the latest Active Population Survey (EPA). The unemployment rate fell to 14.63%, the lowest since the fourth quarter of 2008. The environment of economic recovery, with record numbers in the tourism sector, led to the creation of about 42,700 new jobs, the largest number ever recorded in any of the seventeen regions of Spain. Catalonia closed the third quarter with 3.2 million employed people, a 3.64% increase over the previous year, and was the community with the highest number of people employed, ahead of Madrid (with 2.8 million).

170 international companies will take part in the second edition of the Internet of Things Solutions World Congress (IoTSWC), twice the number of participants from the first edition. Moreover, 160 speakers will discuss as to what extent the Internet is "radically transforming" the industry. The event, held in the Fira de Barcelona facility on Gran Via, kicked off this Tuesday and will continue to offer the latest developments in this sector until next 27th of October. Although the principal focus is the application of the Internet of Things in the Industry, the Catalan Minister for Business and Knowledge Jordi Baiget pointed out during the inauguration ceremony the multiple uses of the IoT, that “it has to do with the industry, but also the daily life of individuals and society, and we have Catalan companies at the event presenting solutions regarding cybersecurity, measurement and data transmission, mobility control and applications in health and agriculture". 

In August, Catalan exports increased by 13.8% over the same period in 2015, reaching €4.5188 billion and setting a new record as the 'best August’ ever registered (since the collection of data began). According to figures published this Thursday by the Spanish Ministry for the Economy and Competitiveness, Catalonia’s exports of goods abroad accounted for 25.6% of the total sales in Spain. The increase of Catalan exports was higher than the EU average (+12%) and well above that of countries such as France (+2.3%) and the UK (+1.2%). However, this increase was lower than that of countries such as Germany (+14.2%) and Italy (+29.4%). Spanish exports also rose (by 8.9%), totalling €17.646 billion.

The 20^th edition of Barcelona Meeting Point (BMP), the international and professional real estate trade fair in Spain, opened this Wednesday. The inauguration was marked by contention. The Catalan representatives decided not to attend it. The Catalan Minister for Public Administration, Meritxell Borràs, and the Catalan Minister for Planning and Sustainability, Josep Rull, informed the President of the BMP of their decision through a letter. The reason for their absence is that by Tuesday, less than 24 hours before the start of the fair, the organisers had still not informed the Catalan representatives about the time of the event, as they were waiting to know the agenda of the Spanish representative. The Catalan Ministers assessed this lack of information as “disregard and informality towards members of the Government of Catalonia and all the attendees”.

Mind the Byte, a Catalan company dedicated to computational drug design, will enter the bioinformatics market in Japan, thanks to a distribution agreement with the Japanese company Filgen. This agreement came after several meetings between the companies during a mission of the public business competitiveness and internationalisation agency ACCIÓ in Japan last year. The founder and CEO of Mind the Byte, Alfons Nonell-Canals, stated that this step is important as the overall bioinformatics market in Japan “is expected to grow 21% by 2020”. The company estimates that it will have an annual turnover of €1.2 million in Japan by 2020, “a very large and mature market in the field of biotechnology”. "We are small and we are in a phase of development but Japan is a key country", said Nonell-Canals.

Catalonia is the region of Spain that attracts most foreign investment. According to the report fDi Markets by the Financial Times, Catalonia attracted €14.532 billion in foreign investment between January 2011 and June 2016, coming from 601 projects that resulted in the creation of 38,385 direct jobs. The Catalan economy leads the ranking in Spain overall in terms of attracting foreign direct investment and accounted for 31% of capital, 34% of job creation and 37% of projects during the period mentioned. The countries leading the investment in Catalonia are Germany, France and the United States. The ICT sector and software, logistics and support services for companies are the fields in which Catalonia shows the best investment opportunities in comparison with other economies worldwide.

‘Catalunya Emprèn’ is an action plan from the Catalan Government which brings together all the initiatives of the different government departments to guide entrepreneurs in regards to the financial assistance they can request. The Catalan Minister for Business and Knowledge, Jordi Baiget, stated on Monday that Catalonia invested last year €55 million in grants to entrepreneurs, resulting in the creation of more than 5,000 companies. Baiget announced that after the success of the initiative, the Government has decided to continue the programme into 2017, and added that all the representatives from the different government departments have ''reaffirmed '' their commitment to maintain this unified strategy in the field of entrepreneurship.

The number of people unemployed and registered as such at the Catalan Public Employment Service (SOC) at the end of September increased by 5,641 people compared to the August figures, a growth of 1.27%, according to data released on Tuesday by the Spanish Employment Ministry. In total, last month there were 451,081 jobseekers. In annual terms, there are 62,106 less people on the SOC lists, a 12.1% drop in comparison to September 2015. In the whole of Spain, unemployment increased by 22,801 people in September and the number of people officially registered as jobseekers reached 3,720,297 individuals. However, within the last 12 months, unemployment in Spain decreased by 373,745 individuals, a 9.13% improvement over September 2015.