House prices have dropped for 17 consecutive quarters in Catalonia. Last quarter’s drop was the highest since the crisis in the sector began in 2008, falling by 14.6% in the last 12 months. In Spain as a whole, house prices dropped by 11.8%.
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 a year earlier. Catalan industrial prices have been improving their competitiveness since 2009.
Catalonia’s GDP decreased by 0.1% between January and March 2012, which represents a minor drop compared to the last quarter of 2011. However, the Catalan economy has had red numbers for two consecutive quarters and technically enters a recession. The good results in the tourism and export industries improve the macroeconomic figures.
Considering the “exceptional” crisis Spain’s banking system is going through, the Cercle d’Economia, a Catalan economic forum open to businesspeople and academics, recommends “drastic” measures in order to face a “systemic” problem at European level. The Chairman of Cercle d’Economia, former Spanish Minister Josep Piqué, stated that Spain “will not succeed on its own”.
The number of international tourists who have visited Catalonia over the first three months of 2012 reached 2,162,337 people. This figure is a 9.9% increase over last year and represents 23.5% of the total number of foreigners visiting Spain.
The volume of freight and liquids transported through Tarragona Port in the first 3 months of the year reached more than 9 million tonnes. The movement of liquids increased significantly, notably oil derivate products, after last year’s technical halt at Repsol’s refinery.
On Europe’s Day, CNA reflects the conference the President of the European Parliament gave in Barcelona last week. The German politician emphasised the importance of the Mediterranean Basin and its great economic potential; the historical moment we are living due to the Arab Revolution; the lack of leadership in Europe and importance of working for a strong European Union in order stay at the forefront of the political scene.
Catalonia’s exports during last January and February had a total value of €9.24 billion. Catalan imports increased by 0.24% in the same period and have, registering in those two months a total value of €11.22 billion. The European Union received 64.28% of Catalonia’s exports. However, exports to markets such as Switzerland and Russia increased by 69% and 40% respectively.
The President of the European Central Bank, whose Governing Council met in Barcelona on May 3rd, praised the Spanish Government’s “significant effort” made in a “very short period of time” to approve structural reforms. However, Mario Draghi, asked Spain “to persevere” in the strategy based on austerity and accomplish further reforms. The ECB’s President emphasised Europe’s need to adopt measures strengthening economic growth but without abandoning the principles of austerity. Draghi recommended continuing to reduce public spending in order to control the deficit. As expected, the ECB is maintaining the interest rate at 1%.
Coinciding with the European Central Bank Governing Council organised in Barcelona, the President of the Catalan Government, Artur Mas, met with Mario Draghi and other members of the ECB Governing Council. Mas took the opportunity to explain to the ECB the Catalan Government’s austerity measures and its efforts to reduce Catalonia’s public deficit. He also spoke of his party’s support to all the reforms taken at Spanish level, despite being unpopular. However, Mas warned the ECB President that reducing the deficit too fast in the middle of an economic recession might worsen the crisis.
A research study carried out by Barcelona’s Universitat Pompeu Fabra (UPF) has concluded that there is a constant trend of decline. Between 2006, when prices peaked, and the end of 2011 Spanish property prices have dropped by 41.7% as average. The coordinator of the study, José García-Montalvo, pointed out that there has been an accelerated fall from the second half of 2010 and the same period in 2011 when prices dropped 19.7% in Spain. García-Montalvo added that this trend would not change in the short or mid- term if the credit market does not recover.
Unemployment in Catalonia reaches a new historical record with 836.900 people registered as out of work. Spain’s unemployment rate at the end of March was 24.44%, reaching a total figure of 5,639,500 jobless people. The Spanish Vice President said on Friday that Spain is living “the harshest moments” of the crisis and that the data show that reforms need to be pursued. The Catalan Government criticised the Spanish Government for reducing the budget for employment policies by 56% due to be implemented in Catalonia in its budget proposal for 2012.
The Russian company Lukoil has reached an agreement with the Catalan company Meroil to build 13 new oil tanks at Barcelona Port, which are able to store 360,000 cubic metres. Furthermore, Barcelona Port is the only Mediterranean port ready to host the largest and deepest oil tankers. The Catalan President, Artur Mas, unveiled the infrastructure and emphasised Catalonia is strengthening its position as “Europe’s gateway for goods coming from Asia and North Africa”. He also noted Catalonia’s attractive position for foreign investment. Barcelona Port is linked by international width standard railway with Central Europe and has the Zona Franca logistics and industrial district next to it.
In the three first months of the year, the inflation rate remained stable in Catalonia. The monthly price increase, which is the highest since October 2010, is mainly due to the end of retail sales and the oil price increase. In Spain, prices increased by 0.7% in March, while the annual inflation rate was set at 1.9%.
Barcelona was declared the Mobile World Capital last summer, and the organising city of the Mobile World Congress until at least 2018. Being the Mobile World Capital means that Barcelona aims to become one of the main world centres for the mobile industry. Furthermore, several projects will be based in the Catalan capital, such as a Mobile World Hub. A foundation has been created to promote these projects and attract investments. It is funded with € 30 million each from Barcelona City Council, the Catalan Government and the Spanish Government, and it is open to the private sector.