growth

The former President of the European Parliament, Josep Borrell, believes that the European Central Bank must buy sovereign debt and that governments need to implement budget cuts at a slower rate in order to avoid a drop in economic growth. Borrell also stressed that “the worst is possible”, and that they must act quickly. However, he added that “the euro will not disappear” but if some countries were left out, “it would be a problem for everybody” as “it would cause a big mess”.

Catalonia would have lost 60,000 residents by the end of 2011, according to the INE. For the first time in decades, Catalonia's population will fall this year. In the next ten years, Spain’s population would decrease by 1.2% if current demographic trends are maintained. At the end of 2010, Catalonia had 7,512,000 residents and Spain 47,021,000.

Catalan GDP grew by 0.7% during the second quarter of 2011 compared to the same period in 2010. However, in the first quarter it grew by 1.1%. The export sector continues being the Catalan economy’s engine, while internal demand fell. Catalan GDP grew by 0.2% from the first to the second quarter this year, the same rate than for the rest of the European Union. At the end of 2010, Catalan GDP represented 209.7 billion euros, more than Finland’s, Portugal’s or Venezuela’s.

The data corresponded to the end of June. The Spanish Statistics Institute confirmed the data, proving the prediction by the Bank of Spain of a slowdown in the economy.

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 industry sector consolidates its position as the main engine towards the recovery from the economic crisis. Despite this positive data, the 2010 GDP falls by 0.2% in comparison to 2009.

An increase in consumer spending and exportations means the Catalan economy grew by 0.2% in the second quarter of the year, growing quicker than expected.

?There is a good trend towards recovery in Catalonia in the second half of the year,? states Antoni Castells, Minister of Economy and Finance

The Catalan GDP is expected to fall 0.3% in 2010 but grow 0.9% in 2011, according to a study from the savings bank Caixa de Catalunya, Tarragona i Manresa. Exportation, especially in the industry sector, will be the key factor behind the recovery.

In 2009 there have been 5% less births in Catalonia. The rate is at 11.65 for every 1,000 inhabitants, greater than the 10.73 for the Spanish average.