Business

KT Corporation has chosen Barcelona to be the “importation gateway for its products and services” in Europe, stated the Catalan Ministry for Business and Knowledge, Jordi Baiget. The agreement with the Korean telecom giant was reached during the latest edition of the Mobile World Congress, which took place in Barcelona between the 22^nd and the 25^th of February, and established the setting up of a commercial office in Catalonia, as well as the creation of “jobs and investments” which are yet to be finalised. At the same time, the agreement foresees that KT will facilitate the distribution of Catalan products and technologies in the Korean market. 

The 2016 edition of the Mobile World Congress (MWC) registered a record participation of 101,000 visitors, 6% more than last year’s edition. The 2,200 stands distributed across two different venues, L’Hospitalet Gran Via and Fira de Montjuic, constituted an exhibition of 110,000 square metres where the latest news in the mobile phone-related industry was unveiled. Presentations on virtual reality held the spotlight throughout the week, with newly unveiled gadgets and discussions on how virtual reality will change how we live and communicate.Despite the mobility problems, mainly derived from the metro strike which diluted the opening of Barcelona’s new L9 underground line, GSMA CEO John Hoffmann confirmed that the MWC will stay in Barcelona until 2023. The 2017 edition will take place from the 27^th of February to the 2^nd of March.

From this Monday until the 25^th of February leading brands in the mobile phone-related industries such as Samsung, LG and Sony will present their latest wares and Facebook founder Mark Zuckerberg and F1 driver Lewis Hamilton will be amongst the speakers. A record figure of 100,000 visitors are expected and 2,100 international exhibitors have confirmed their attendance at the fair, consolidating Barcelona as a true meeting point for the sector. The 2016 edition of the Mobile World Congress (MWC) will take place amid major security measures due to the terrorist attacks in Paris last November and will also be affected by the metro strike, whichTransports Metropolitans de Barcelona (TMB) will carry out on the key days of the MWC. Thus, the recently opened new metro line, the L9, won’t contribute as much mobility as expected.

Catalonia sold abroad some €63,839 million worth of goods and services in 2015, setting a new record. This figure represents a 6.1% increase in comparison to the level of exports registered in 2014, according to information released by the Spanish Ministry for the Economy and Competitiveness. Imports into Catalonia reached €76 billion in 2015, which represents a 5.8% increase on figures from the same period in 2014. This means that Catalonia's trade balance registered a deficit of €12.1985 billion, a 4% reduction on the deficit for 2014. Catalonia continues to lead the exports ranking in Spain and accounts for 25.5% of all Spanish goods and services sold abroad, followed by the Valencian Community (11.4%) and Madrid (11.3%).The chemical sector was the sector which contributed the most to Catalonia's exports, representing 27% of the total for 2015 and reaching €8,497.5 million. 

The negative inflation rate in January has been accentuated by a drop in housing prices (-4.8%) mainly due to the decrease in electricity prices, according to figures released by the Spanish Statistics Institute. The January sales have also affected the so-called Consumer Price Index (IPC). On the other hand, the price of transportation grew from -2.7% in December to -1.7% this past January, due to the increase in fuel prices. Thus, the annual variation in Catalonia leaves annual inflation for last month flat. In the whole of Spain, the drop was even more accentuated; prices decreased by 0.3% last month in comparison to January 2015. 

Barcelona’s El Prat airport can now be reached by metro from the city centre. Transports Metropolitans de Barcelona (TMB) has finally opened L9 Sud, a driverless 20-kilometre stretch which connects the city centre with El Prat’s Terminal 1. The project, which was originally set to be completed by 2008, has been awaited with much anticipation, especially by those living on the outskirts of Barcelona or in areas without a metro connection, and is expected to transport nearl 30 million passengers per year. The project itself was initially estimated to cost roughly €3 million, but the Catalan government invested 200 additional million on top of the original budget. Despite these changes, L9 Sud will provide passengers a new, more convenient route to El Prat Airport as opposed to the current Rodalies line. Additionally, it will connect to 15 new stations and three other metro lines.

Hard Rock’s president Hamish Dodds and the company’s vice president, Nelson Parker, met this Wednesday with Catalan President Carles Puigdemont and the Catalan government’s vice president, Oriol Junqueras, in order to outline to them the multinational’s aim to set up a Tourist Integrated Centre in BCN World which would represent a 2.5-billion-euro investment. However, the BCN World project, which is set to be built on the 800 hectares surrounding the Port Aventura theme park (on the Costa Daurada, near Tarragona), is currently on ‘stand-by’. The government is trying to find the greatest consensus possible amongst the different parties and institutions involved and President Puigdemont announced this week that a consultation may be set up to get to know the locals’ opinions. 

The initiative will set up Catalonia as a point of reference in Europe regarding this kind of medicine. The agreement between the Catalan government and a consortium led by the Beijing government also includes actions in the fields of higher education, research, health and culture. For example, an official master’s degree in Chinese traditional medicine will be taught in collaboration with two Catalan universities, the Universitat de Barcelona (UB) and the Universitat Pompeu Fabra (UPF), and alongside with Beijing University of Chinese Medicine. The project has been promoted by the Catalan Ministry for Business and Knowledge, through the area which focuses on attracting foreign investment, ACCIÓ – Catalonia Trade & Investment, and the Secretary for Universities and Research.

Unemployment in Catalonia grew by 0.47% in January, which represents a 11% decrease in comparison to the same month last year. Thus, the first month of the year saw 2,412 people added to the unemployment list, which now totals 518,080 and represents the best January in terms of unemployment since 2007, according to the Spanish Ministry of Employment and Social Security. The number of contracts in January dropped by 5.91% and totalled 202,894, representing 12,752 less than in December. This is mainly due to the termination of many seasonal contracts. In the whole of Spain, the number of unemployed grew by 57,247 people and now totals 4,150,755. 

The Catalan banking group Banc Sabadell earned €708.4 million in 2015, according to figures published by the company. This result is 90.6% higher than that obtained in 2014. The good result of Banc Sabadell in 2015 is mainly due to the integration of the UK bank TSB in June, which added accounts worth €122 million. Without this operation, Banc Sabadell’s net profits would only had grown by 57.8%. Thus, net interest income, which measures the bank’s ordinary activity of receiving deposits and authorising credit, was €3.203 billion, 41.7% higher than in 2014. The internationalisation of Banc Sabadell has already been consolidated and 32% of the credits were authorised abroad. In 2014, this percentage was 6%. The default rate, which has dropped to 7.79%, 5 points less than in 2014, also contributed to Banc Sabadell’s positive result.

Catalonia’s most important bank and one of the most significant companies in the whole of Spain, CaixaBank, obtained net profits of €814 million in 2015. This figure is 31.4% higher than what the entity earned in 2014. According to CaixaBank’s president, Isidre Fainé, this result is due to the gross margin, which reached €7,726 million (11.3% more than 2014), the containment of recurrent expenditure (which dropped to 1.2%) and a lower level of default allocations (the rate of which dropped to 23.6%). In fact, the default rate fell to 7.9%, including Barclays’ loan portfolios. In September 2014, CaixaBank bought the Spanish section of Barclays, Barclays Bank SAU, for €800 million.

There were 87,900 fewer jobseekers at the end of 2015 in comparison to the end of 2014, which represents the biggest annual drop since 2003, according to the latest Active Population Survey (EPA). This represents the 10^th consecutive month in which the rate of unemployment has decreased in Catalonia in comparison to 2014. The unemployment rate in Catalonia at the end of 2015 was 17.7%, 2 points lower than it was on the 31^st of December 2014. In the whole of Spain, there were 678,000 less unemployed at the end of 2015, the biggest drop in absolute numbers. In percentage terms, the unemployment rate was 20.9%, still higher than Catalonia’s.

Barcelona’s Chamber of Commerce estimates that the Catalan economy grew by 3.2% in 2015, which is more than double the figure for 2014 and marks a return to pre-crisis levels, when the GDP increased by 1.5%. To “keep on advancing on the path of economic recovery” and to respond to Catalonia’s push for independence and “guarantee the territorial stability”, the president of Barcelona’s Chamber of Commerce, Miquel Valls, called for “the widest consensus possible” amongst the main parties with representation in the Spanish Parliament. He also emphasised the “fundamental” need to keep the relationship and the compromises established with the EU, as the 40-billion-euros rescue package for the banks in Spain led to the recovery of the risk premium and brought back the trust in the Spanish market.

The European Commission has opened “an in-depth investigation” into whether public measures in favour of mining company Iberpotash gave it a selective advantage over its competitors, in breach of EU State aid rules. “The Spanish authorities fully financed EUR 7.9 million of costs to physically cover one of Iberpotash's waste heaps and reduce pollution” stated the EC’s press release. If confirmed, this would entail a breach in the 'polluter pays' principle since a public authority would have been bearing the clean-up costs rather than the company responsible for the pollution. Iberpotash already has a European infraction procedure against it, which has been pending since 2014.

The main Catalan trade association for small and medium-sized companies, Pimec, has repeatedly shown its support for Catalonia’s right to decide its political future. However, in an interview with CNA this Thursday, Pimec’s president Josep González called for the Government to keep the pro-independence process “within the law”. “Let’s do things, but let’s do them right and with common sense”, he stated. González also urged the new executive to approve a new budget as soon as possible and fight against unemployment. The association head went on to celebrate the election of the new Catalan Minister for Business and Knowledge, Jordi Baiget, and defined him as “prudent, open-minded and educated”.