Unemployment registered at SEPE increased by 37,000 this October. It fell in Madrid. A little (190 fewer unemployed), but it’s down.
And that’s not the only reason Madrid’s economy is doing well. truly, It accumulates a higher percentage of Spain’s GDP than Catalonia.
It is an autonomous community of medium area (8,000 square kilometers). With the highest population density in Spain (862 people per km2), its nearly 7 million inhabitants average annual GDP per capita of 34,821 euros, among all autonomous communities (Spanish average 28,280 euros).
The unemployment rate is around 10%, lower than the national average. Its public debt is 13% of GDP, the lowest in all of Spain, and there is no debt to the Fund for Autonomous Communities (which includes debt from the FLA, the Autonomous Liquidity Fund). Yes, that’s “zero”!
Of the 191,750 million euros of this debt registered with the Bank of Spain in June, Catalonia 73,000 million, Valencia 48,000, Andalusia 25,000, …
The unemployment rate is around 10%, lower than the national average
Madrid needs less help from the state to manage its budgets. Although the autonomous community has a fiscal policy of consistently reducing taxes.
But that doesn’t mean you’re going to cut your budget. Instead, it will increase. Your tax burden goes down and you can spend more. It is an economy that is both effective and efficient.
It is not unusual for its president, Ms Ayuzo, to be against a debt relief deal for Catalonia. While Madrid was cleaning up its debts in previous years, other autonomies were dragging the state along. It is to fund the “international image” with representation in some foreign countries They are redundant in Spanish and European embassies.
This efficient economy is not the result of chance. The community of Madrid lacks natural, agricultural or mineral resources, but it has two invaluable strengths: its geographical location and its human resources.
The geographical location allows it to be a communication hub. A trait he knows how to build and exploit. It has no seaport, however Barajas is the gateway not only to Spain, but also to part of Europe. However, as an airport hub it could gain more efficiency. It has become strong in its position as a railway and road hub.
It does not have a seaport, but Barajas is the gateway not only to Spain, but to part of Europe.
However, this geographical position would not be very profitable if not for the mix of its population. Historically made up of immigrants from all over Spain and now from all over the worldIt has the ability to integrate And, most importantly, their training.
For example, in the Northwest region (Pozuelo, Majadahonda, las Rozas,…) there are cities with 70% of university graduates in registered households. Madrid is changing in leaps and bounds, a Center Universal university education, in Spanish of course, but also in English. And it is clear that the growth poles of the future will be built around universities. Some are very young, but they mature in leaps and bounds.
I think the government of the community will attract many higher education centers that want to come to Madrid. It is an industry with high value, non-polluting, multi-skilled jobs and exhibits economic, social and cultural development around it. The Department of Technology and the University are integrated.
Culture is also the Madrid of today. The capital is the fourth largest city in the world and the Bernabéu is an iconic football stadium. In addition to all the museum, artistic and monumental value of the capital and cities such as Alcalá de Henares, El Escorial and Aranjuez,…
A hope in Spain is happy to lick its wounds.
however, The future must be built. The economic strategy is clear. But it needs to be outlined. Public administration, private sector and non-profit organizations should jointly participate in this work.
For this reason, Madrid companies should stop whining and complaining to others. The situation in Madrid is very promising and it is time for hope.
***JR Bin Arboledas is a professor at IESE.
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