The Organisation for Economic Cooperation and Development’s Senior Economist for Spain thinks that the Catalan Government’s budget cuts are going “in the right direction”. He also denied that the Autonomous Communities’ deficit puts Spain solvency’s at risk.
The unemployment rate decreased for the third consecutive month. However, last June the reduction was inferior to that experienced in June 2010. June is traditionally a good month for employment figures, because of the high number of tourism-related new contracts.
Sales abroad have been growing at a two-digit rate for 16 consecutive months, being the true engine of the Catalan economy and the main asset towards recuperating economic growth.
The Autonomous Community public debt has increased 26% in the last 12 months and represents now the historic maximum of 11.4% of Spain’s GDP. Spain’s total public debt reached 63.6% of its GDP and totals 679.8 billion euros. The Catalan Government’s debt has reached 34.3 billion euros, 17.2% of Catalonia’s GDP. It raised 33% in the last 12 months, as the Catalan Government’s public deficit was 3.86% in 2010.
In total there were 595,342 people registered as unemployed at the end of May in Catalonia. This 1% reduction in relation to the previous month is not good news compared to May 2010, when there were 20,000 fewer people in dole queues. Unemployment decreased throughout Catalonia and in all sectors. In Spain as a whole, there were 4,189,659 people registered as unemployed.
April numbers have broken a three-month continuous trend of unemployment increases. In total there were 601,541 people registered as unemployed at the end of April.
The Catalan Ministry of Economy and Knowledge has released its macroeconomic outlook for 2011. At the end of the current year, the unemployment rate will be 18%, up from 2010.
Kenneth Rogoff, currently professor at Harvard, predicts that Spain has a “high chance” of being rescued by the European Union. He also ads that, if it were not rescued, even France could fall.
They also asked for an improvement in vocational training and development of the Catalan economy’s internationalisation. The President of the Catalan Government, Artur Mas, met today at the ESADE Business School with 200 of the most important business people in Catalonia. Among others, the presidents and main directors of Abertis, La Caixa, Banc Sabadell, Seat or even FC Barcelona were present and Mas asked them to take the lead in the economic recovery.
Unemployment registers in Catalonia increased by 8,658 people in March. One in four jobseekers does not receive any public assistance. In addition, training courses for jobseekers have run out of funding and are waiting for the new budget to be approved by the Catalan Government.
FDI in Catalonia surpassed the 3.9 billion euros mark in 2010. It represents 34% of FDI in Spain and was almost three times higher than 2009 levels. The Catalan Government is currently negotiating 189 projects that could bring in up to 6.5 billion euros to the Catalan economy.
The Bank of Spain today released the debt of the Spanish Autonomous Communities. Catalan public debt represents 16.2% of Catalonia’s GDP and increased 36.7% in one year. The new Catalan Government stressed its austerity and stability plan, which will cut public expenditure by 10%.
The Spanish Government will invest 25.4 billion euros up until 2020 in this strategic railway infrastructure for goods transportation that will link Spain’s Mediterranean seaports with Central and Northern Europe. The European Commission has to decide in the next 3 months whether the transport axis is a European priority.
The Director of ESADE’s Master in Finance, Jordi Fabregat, recommends that Catalan savings banks speed up its transformation into private banks in order.
602,611 people were unemployed at the end of February in Catalonia, which is 2.2% more than at the end of January.