Catalan industry improved its competitiveness by 0.7% in the last quarter of 2011

Barcelona (ACN).- Compared to the rest of industrialised countries, Catalonia’s industrial sector improved its competitiveness index by 0.7% between October and December 2011, compared to the same period in the previous year, according to the Catalan Statistics Institute (Idescat) and the Catalan Finance Ministry. Catalan industrial products have registered an improvement of their competitiveness in every geographic area of the world in the last quarter of 2011. Furthermore, since 2009 there has been a constant improvement of industrial price competitiveness in Catalonia.

The favourable evolution registered between October and December 2011 is mainly a consequence of the euro devaluation, contributing by 0.6% to the competitiveness improvement. In fact, Catalan export manufacturers have kept their prices constant.

Catalan industrial products gained competitiveness throughout the world. However, the component analysis shows different behaviour. In developed countries, where the competitiveness improvement has represented 0.7%, relative prices have been kept stable. However the nominal component, the component associated to the exchange rate, has dropped by 0.6%.

In the European Union (EU-27), the good behaviour of relative prices has brought a 0.4% competitiveness improvement for Catalan industry. In the new industrial countries in Asia, the 0.4% competitiveness improvement results from a combination of an increase of relative prices (0.9%) that was compensated by the euro depreciation (-1.4%). In those markets, Catalan manufacturers have increased relative prices, but buying euros to buy their products is cheaper. 

Finally, regarding the Eurozone, relative prices of Catalan exports have improved by 0.1% over the last quarter of 2011. In this case, the euro exchange rate is not applicable since all countries share the same currency.