Updated on Saturday, 11 September 2021 – 03:15
The Community’s GDP grew by 31.7% in the second quarter, well above the 198% of the Spanish average. It was the quarter of the political debate on the restrictions to the hotel business after the end of the state of alarm.
Javier Fernndez-Lasquetty, Minister of the Economy of Madrid.
The economic data that are becoming known begin to show that the strategy followed by the Community of Madrid by proposing the fight against Covid combining the protection of citizens’ health with a firm commitment to preserving economic activity as much as possible it has been successful, affirmed yesterday the minister of Economy, Property and Employment, Javier Fernndez-Lasquetty. The region recorded GDP growth of 31.7% in the second quarter of 2021 over the same period of the previous year, 12 points above the national average, 19.8%, according to Lasquetty yesterday. In the same period, the GDP of Catalonia grew by 19.1%, below the average and very far from Madrid.
The strong year-on-year growth is due to the fact that last year the activity was radically slowed down by the confinement of the country. Thus, in the second quarter of 2020, Madrid’s GDP fell 24.2% compared to the previous year, compared to 21.6% in Catalonia. Although Madrid fell more than Catalonia in 2020, it has far exceeded that fall in 2021.
Fernndez-Lasquetty justified the strength of the Madrid economy by the strategy undertaken to face the effects of the Covid-19 crisis. The positive evolution of the regional GDP demonstrates the success of the regional government measures when it comes to balance economic activity with the protection of citizens in health matters, he stated.
The growth of the Madrid economy has been generalized in all sectors in the last year. The largest increase occurred in construction, 37.7%, followed by services, with a growth of 30.2%. Within the services sector, the activity in hospitality and commerce, which experienced a year-on-year increase in activity of 97%. The political debate on the opening of bars and entertainment venues was present in those months and the Community of Madrid was the one that always stood out the most in helping the hospitality sector with the most flexible hours possible.
With regard to Industry, which represents 11% of regional GDP, it has experienced an annual increase of 19.4%. Regional demand grew 37.1% compared to the same period of the previous year, contributing 34.3% to the region’s GDP. The 16.4% increase in investment and 41.7% rise in consumption, thanks to households.
Regarding the quarter-on-quarter evolution, between March and June, the Community GDP reversed the negative trend of the first quarter and registered a 1.6% growth. In the first three months of 2021, the Madrid economy fell 1.4%. This indicates that we are working in the right direction and we are advancing in the economic recovery thanks to the economic and fiscal policies of the Community of Madrid, Lasquetty said.
According to Fernndez-Lasquetty, some of the main Spanish research services, such as BBVA, Hispalink, Ceprede and Funcas, estimate a growth of 6.4% in the Community of Madrid in 2021 and 6.3% for the Spanish GDP, for a 6.1% and 5.9% in 2022. If these forecasts are confirmed, the growth rate of the Madrid economy will to reach the level of the euro zone in 2022 and return to the path of growth prior to the pandemic before the whole of Spain.
The Minister of Economy also referred to other economic figures that show the favorable behavior of the Community. One is the creation of new companies in the region, which reached 13,005 during the first six months of the year, which represents agglutinate almost a quarter of the national totall. Regarding foreign investment, the Community attracted 1,887.1 million euros during the first three months of 2021, accumulating 61.7% of the national total, compared to 15.2% in Catalonia.
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