The Community of Madrid has registered a regional GDP growth of 31.7% in the last year , managing to reverse the negative trend at the start of the year with a boost of 1.6% in the second quarter of 2021, according to data from the Quarterly Regional Accounting.
In this way, the region is 12 points above the increase in the Spanish economy, which has been 19.8% , according to the INE, as highlighted by the Minister of Economy, Finance and Employment of the Community of Madrid , Javier Fernández-Lasquetty, who has emphasized the strength of the Madrid economy when it comes to coping with the effects of the health crisis caused by covid-19.
“The positive evolution of the regional GDP demonstrates the success of the regional government measures when it comes to balancing economic activity with the protection of citizens in health matters,” the counselor defended at a press conference before the media.
Compared with the data from 2019, the year prior to the covid-19 pandemic, the Deputy Minister of Economy, Manuel Llamas, has stressed that the Madrid economy fell by 3% while in the country as a whole the decrease was almost the double. In any case, he stressed that the region is recovering “more quickly and intensely” than the country as a whole.
In the balance of the second quarter, the GDP of the Community of Madrid has grown by 1.6% and thus reverses the negative trend of the first three months of the year, when the Spanish economy fell by 1.4%. Growth, according to the counselor, which indicates that the regional government is working “in the right direction” and is advancing “in economic recovery thanks to economic and fiscal policies.”
Although the growth of the Madrid economy has been generalized in all economic sectors in the last year, the greatest increase has occurred in the Construction sector, with 37.7% , followed by Services, with an increase of 30 ,2%. The latter, precisely, is the sector with the greatest weight for regional GDP, with 85% of the total volume.
For its part, the Industry sector, which represents 11% of the regional productive structure, the sector has experienced an annual increase of 19.4%.
Regarding regional demand, it has registered an increase of 37.1% compared to the same period of the previous year, with a contribution of 34.3% to the regional GDP. In this context, a 16.4% increase in investment and a 41.7% rise in consumption stand out, mainly due to the increase in households. For its part, external demand fell 18.9%, with a negative contribution to GDP of 2.6 points.
Forecast for the next few months
Looking ahead to the next few months, forecasts point to the continuation of the positive trend during 2021 and 2022, especially from the fourth quarter of this year. Specifically, the average of the forecasts made by BBVA, Hispalink, Ceprede and Funcas places the increase in regional GDP at 6.4% for 2021 , compared to 6.3% in Spain, and 6.1% for the next year, compared to 5.9% for Spanish GDP.
“If these forecasts are confirmed for 2022, the growth rate of the Madrid economy will be at the level of that of the euro zone”, stressed Fernández-Lasquetty, who stressed that “the Community will resume the growth path prior to the pandemic before the whole of Spain “.
Foreign investment and business creation
On the other hand, the Community closed the equator of the year with 13,005 new companies , with 23.4% of the national total and leading the ranking of all autonomous communities by bringing together one in four new companies created in Spain.
Likewise, in terms of foreign investment, the Community attracted 1,887.1 million euros in this area during the first three months of 2021, which represents 61.7% of the national total.