Catalan economy rattled by independence push

BARCELONA: The political uncertainty caused by Catalonia’s independence push is hitting small businesses and people’s savings accounts after pushing several big firms and banks to relocate elsewhere in Spain. The prospect of an independent Catalonia has already prompted two major banks-Sabadell and CaixaBank-and other listed firms to move their registered headquarters to other parts of Spain. The exodus continued on Monday as real estate business Colonial and toll-road company Abertis became the latest big names to move their base from the wealthy northeastern region. The transfers come ahead of a Tuesday speech by Catalan leader Carles Puigdemont that separatists hope will include a unilateral declaration of independence.

Catalonia, a region of 7.5 million people about the size of Belgium, generates about 20 percent of Spain’s economic output and 25 percent of its exports. It is home to 40 percent of Spain’s companies which employ over 200 people, experts say. As a separate country its gross domestic product would be about as big as Portugal’s or Finland’s. Signs have popped up that the uncertainty over Catalonia’s future has started to have an impact on small firms as well. “We got a call from a customer who was interested in our services but when we said we were based in Barcelona, that was a problem,” Maria Hinojosa, an employee of a financial consultancy told AFP. Pedro Gomez, who works at a Barcelona real estate firm, said the independence push had “dampened interest” in buying property. —AFP