Business

LATAM Airlines Group will operate from El Prat Airport starting in October with a new route running between Barcelona and Sao Paulo through the TAM airline. Three weekly direct flights will be offered, in hopes of reaching 60,000 passengers a year. According to LATAM Airlines CEO, Rodrigo Contreras, the company chose Barcelona because they consider it "a strategic market in Europe," both for the growth of Catalan tourism in Brazil as well as for the Catalan capital as a tourist destination. In this sense, Contreras said Barcelona is the top Spanish destination chosen by Brazilian travellers and the fifth most popular in Europe for business trips and events. The addition of this flight is a continuation of an upward trend for El Prat, which recorded a 4.8% increase in passengers from January through June compared to the same period in 2014, including a 2.7% rise for the month of June.

According to 'Memòria Econòmica 2014' (an annual analysis promoted by the Barcelona Chamber of Commerce), last year the Catalan economy registered its best performance since the start of the economic crisis. In particular, for the first time since 2007, positive net results in terms of employment were recorded. However, current GDP is still 6% below 2007 levels and will remain so until 2016. In addition, if growth continues at the current rate, employment will only reach 2007 levels in seven years, which means in 2021. According to the report's estimates, at the end of 2015, Catalonia will record a 3% GDP growth.

The month of July started with the strengthening of Catalonia's business and economic relations with China. On Wednesday, China Construction Bank Corporation (CCB) - the second largest bank in the world by market capitalisation (207.9 billion U.S. dollars) - opened its first Spanish branch in the Catalan capital with an official ceremony at the Palace of Pedralbes. The same day, the Catalan Government signed an agreement with the Chinese Province of Fujian, aimed at expanding export opportunities for Catalan agricultural products and promoting the exchange of market and legal information between the two partners.

Catalonia was last month again the Spanish Autonomous Community with the most intense monthly and annual decline in registered unemployment, official data released on Thursday show. According to the Spanish Ministry of Employment and Social Security, by the end of June 2015 there were 20,952 fewer people registered with the Catalan Public Employment Service (SOC) in comparison to May 2015, leaving the total number of registered unemployed individuals at 510,947. This drop is, in absolute terms, the lowest recorded for the month of June in the last 3 years. However, in relative terms, registered unemployment fell by -3.94%, the biggest decline for the month of June in 19 years. Compared to a year ago, the number of jobseekers decreased by 59,267 (-10.39%), thus marking a two-year period of consecutive annual decline in registered unemployment.

On Monday evening, the Catalan fashion brand Mango opened the 16th edition of the 080 Barcelona Fashion Week, showcasing its new autumn/winter collections for men and women. Catalan Business and Employment Minister, Felip Puig, took part in the opening ceremony of the event, which will run from 29 June to 3 July at the Olympic Stadium Lluís Companys. In total, 22 designers and 15 brands are participating, in a combination of young talent, world renowned artists and international labels. As this year's show takes place within the walls that hosted the Olympics in 1992, Puig expressed his hopes for the fashion event to recover "all its openness to the outside world, its fair play, its ability to welcome visitors and, at the same time, the commitment to talent and ambition".

The Catalan tourism sector expects a good season this summer in regard to occupancy of tourist accommodations, as reported to ACN by unions and employers in the country. Catalonia has attracted more tourists than any other region in Spain since the start of 2015, according to the Survey of Tourist Movements at Borders (Frontur), released by the Ministry of Industry, Energy and Tourism. Barcelona, with apartment occupancy around 85% and coastal regions of Girona – which is on the cusp of being full during August – are the areas that will attract the highest demand for tourist accommodations. The interior of Lleida expects occupancy to exceed 65%, while the Pyrenean part will be full the whole week of 15 August. As for Central Catalonia, occupation can swing between 60% and 80%, and in Tarragona it will depend on last-minute reservations.

Catalonia received a total of 1,628,268 foreign tourists in May 2015, an increase of 7.2% compared to May 2014 and the best figure for this month since 2000. According to the survey of Tourist Movements at Borders (Frontur) prepared by the Ministry of Industry, Energy and Tourism, in the first five months of 2015 the number of foreign tourists increased by 5.2% in Catalonia, with more than 5.7 million visitors from abroad. In Spain as a whole, the number of tourists visiting between January and May rose by 5.1% to a new record of 22.5 million visitors over the first five months of the year.

Catalonia's GDP has increased by 1.1% during the first quarter of the year compared to the last quarter of 2014, while the Spanish economy grew by 0.9% and that of the European Union by 0.5%, according to definitive figures released by the Catalan Statistics Instituted (Idescat) on Friday. In annual terms, Catalonia's economy increased by 2.6% from March 2014 to March 2015, mostly due to the positive evolution of domestic demand and the strength of the export sector. The figures released this Friday improve upon the provisional data that had been announced in May for the first term of 2015, when it was stated that Catalonia’s economy had grown by 0.9% from January to March. With the 1.1% growth finally registered, Catalonia now accumulates 8 consecutive terms of quarterly growth.

EasyJet, the second-largest low-cost carrier in Europe, will open a new operational base at Barcelona-El Prat Airport in February 2016. In doing so, the British low-cost airline will permanently base aircraft and crew at the Catalan airport, upgrading their presence in Barcelona. In particular, the company's hub will create 120 new local jobs – mainly for pilots and cabin crew – and will entail the allocation of three A320 Airbuses at Barcelona-El Prat airport. With this operation, EasyJet aims to provide an enhanced service for business passengers "who will go to and return the same day from destinations such as London and Geneva". The company has been operating in Barcelona El Prat for 19 years, transporting a total of approximately 32 million passengers to and from the Catalan airport.

Between 1993 and 2014, a growing trend of foreign investment was registered in Catalonia, a study by Barcelona’s Chamber of Commerce shows. This upward trend continued unbroken in the long-term, not even being interrupted by the decline of -15.8% recorded in 2014. According to the study, it is not possible to conclude that – over the period analysed – investment in Catalonia "has been adversely affected by the political context", in particular the Catalan self-determination process. In addition, for 2015 – even after just the first few months of the year have passed – the business environment seems to suggest that investment in productive capacity will be higher than in 2014.

"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 Spanish banking giant BBVA, which purchased Catalunya Banc last July, is now proposing to shut down 400 branches of the acquired bank and reduce its staff by 2,000 employees (out of a total of 4,400 currently employed), according to trade union sources. At the end of April, the BBVA announced it would close 285 Catalunya Banc branches and reduce the staff by about 1,700 people. However, this Wednesday the Spanish bank has released higher figures and with this action is kicking off the official negotiation period with trade unions before it registers a mass layoff. The adjustment is to start already this year and would be completed by 2017, with the main part of it taking place during 2016. In theory it should only affect the branches that originally belonged to Catalunya Banc (CX) and the employees who were originally working for the former Catalan savings bank, and not those of the BBVA working in Catalonia. In April, Angel Cano, who is the CEO of the Spanish bank, stated that the adjustment would take place within the new integrated structure, not only in regard to the former CX branches and staff.

The 17^th edition of the annual International Logistics and Material Handling Exhibition (SIL) kicked off on Tuesday in Barcelona and will be on until Thursday 11^th June. Held at Fira de Barcelona's Montjuic venue, the show will host more than 550 companies (45% international) presenting about a hundred innovations for the first time. The event is the only one of its kind taking place in Spain and the second-biggest in Europe. During the opening ceremony, SIL's President, Enrique Lacalle, pointed out that the logistics sector had not been severely hit by the crisis and now "is giving good news" with a4% rise in corporate turnover expected for 2015. In addition, the nature of the exhibition reflects the character of the hosting city: the Catalan capital's port has the largest logistics concentration of southern Europe and the Mediterranean within a radius of 5 Km and also has a geostrategic location. Finally, the main roads and railway connecting the Iberian Peninsula with the rest of Europe pass through Greater Barcelona.

The price of houses and apartments in Catalonia has now accumulated 4 consecutive quarters of annual increases, increasing by 1.8% between January and March 2015 compared to the same period in 2014, according to figures released on Tuesday by the Spanish Statistics Institute (INE). After 6 years of falling prices, housing prices have been on the rise since the first quarter of 2014, showing the sector's recovery from the financial crisis. However, despite the annual increases and overall positive figures, housing prices fell in quarterly terms, decreasing by 0.9% compared to the last quarter of 2014. As well as this, the number of housing units sold during last April in Catalonia grew by 13%. In Spain as a whole, housing prices increased by 1.5% in the first quarter of 2015 compared to the same period in 2014, with the number of housing sales in April growing by 9.4%.

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.