August 12, 2020

Independence strikes the competitiveness of Catalonia

He independence challenge in Catalonia It is an inexhaustible source of bad news for the economy of this Spanish region. Yesterday this newspaper published that the "procés" has cost 2,100 million euros to Catalan GDP and now it is economists who warn that competitiveness has stagnated, along with the Basque Country, Murcia and La Rioja. Catalonia remains in fourth position and forms together with Madrid (1), Basque Country (3), Navarra (2) and Aragón (5) a «Competitive triangle» whose "center of gravity tends to move" towards the capital of Spain «For weakness and atony» Catalan and Basque.

In the specific case of Catalonia, «the climate of institutional crisis and growing uncertainty they begin to make a dent in the competitiveness of this community ». Economists point out that "both economic growth, such as foreign investment or the business climate, begin to resent." In addition, the indicators used (year 2018) do not yet reflect the recent disturbances in Catalonia following the judgment of the Supreme Court, who sentenced the main leaders of the "procés" to prison. Unlike Catalonia, in the Basque Country there is no notable political or economic fact that justifies the stagnation of its competitiveness. Its poor results are the result of lower economic growth and productivity, lower foreign investment, increased temporality, stagnation in inequality in a context of improvement, the sharp decline in exporting companies or the increase in labor costs unitary

On the whole, structural competitiveness increased 5.2% in 2018 in the average of the 17 autonomous communities. This growth improves the 2017 records and is above the average increase of the last ten years. Competitiveness increases in 13 regions and all regions without exception clearly exceed pre-crisis levels. Extremadura, Andalucía, Canarias, Castilla-La Mancha, Baleares and Murcia are located in the tail car of competitiveness. In the intermediate-upper strata are Catalonia and Aragon, while La Rioja, Castilla y León, Galicia, Asturias, Cantabria and Comunidad Valenciana are part of the group of autonomies with a medium-low competitive level. Compared with the previous year, the Basque Country and Asturias descend one and two positions, respectively, while Navarra climbs one position and Galicia wins two positions.

Only four regions exceed the average European GDP per capita

The 2018 data show that only four autonomous communities, Comunidad de Madrid (23% higher), Basque Country (20%), Navarra (12%) and Catalonia (8%), clearly exceed the GDP per average inhabitant of the European Union. Aragon reaches a value very slightly higher than the community average. At the opposite extreme, Extremadura, Andalusia, Castilla-La Mancha, Canarias and Murcia, are the worst situated Spanish regions, with levels in all cases below 75% of the community average. Regarding the Spanish average, which almost reaches 91% of the average income of the EU, seven autonomies are above it (Aragon, La Rioja and Balearic Islands add up to the four mentioned above). In terms of inter-territorial inequality, the per capita income of the community with the highest value, Comunidad de Madrid, doubles the one with the lowest value, Extremadura. In terms of labor productivity, only the Basque Country (4.8% higher) and the Community of Madrid (1,%) have higher productivity levels than the EU-28 average. The least productive communities Murcia (23% lower than the European average), Extremadura (-21%), Andalusia (-19%), Castilla-La Mancha, Valencian Community and Galicia (about 14% lower than the EU-28 average in the three cases).

. (tagsToTranslate) Autonomous Communities (t) Independence (t) Catalonia (t) Basque Country

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