From the editor's desk

The Business Year is making its debut in the Spanish economy in 2020 with two publications, focusing on Barcelona and Spain at large. For these editions, we partnered with AMEC, COTEC and the Catalan Trade and Investment Agency and conducted more than 300 interviews in the most important sectors that make up the economy. The editions focus on a range of topics, from investment opportunities across the nation, newly emerging industries such as technology and innovation, as well as the unique political circumstances.

Spain in general, and Barcelona in particular, have a rich recent history that is crucial in our understanding of its business today. Barcelona’s economy, in particular, has been growing in spite of the pressures of its political limbo. A notable event that called into question its economic stability was the October 2017 independence referendum held by the Catalan regional government in spite of the central government’s rejection of its legitimacy. Toward the end of 2019, this resulted in long sentences for nine Catalan leaders on sedition charges. Furthermore, the Spanish government has held four elections in the past four years; the most recent of which, in November 2019, once again resulted in a hung parliament.

In spite of this, and the hard-hitting 2007 financial crisis, Spain is the world’s 13th-largest economy today and the fifth-largest economy in the EU, with a GDP of USD1.4 trillion. Spain is also the 15th most-attractive country for FDI, the 13th-largest issuer of FDI, and the 11th-largest exporter of commercial services. In the interviews we held, pushing companies to become more global in their markets was often cited as the best consequence of the financial crash. In particular, the trend toward expanding into Latin American markets was prominent. Growing exports and supporting companies, particularly SMEs, to internationalize has propelled further growth in all its biggest industries.

This edition focuses on specific sectors that have been important in this evolution. First, the real estate and construction industry has made notable progress over recent years, effectively rising from the ashes. Second, Spain is leading the European transition to a green economy in line with the central government’s ambitious plan to make its electricity sector reliant on renewable sources by 2050. This, coupled with Spain’s climate, has made it a reference in terms of photovoltaic and wind energy.

Thirdly, Spain’s world-renowned tourism sector continues to lead, breaking its own records on arrivals year on year. There is a conscious effort here to diversify tourism and transform Spain into a hub for MICE tourism. Lastly, and perhaps most importantly, the technology sector is consolidating efforts to digitalize the economy as a whole, successfully becoming a tool for the growth of all other sectors. New players in all the aforementioned sectors are disrupting and reshuffling the framework of business in Spain breathing new life into the economy. Testament to this is the sheer number of start-ups being created across both Madrid and Barcelona.

This publication is unique in that it provides a holistic and multisectoral view of development at a point of much political uncertainty, all amidst notable efforts to become a leader of Industry 4.0 in the European bloc. With information straight from the mouths of leaders and decision makers across the economy, it is a comprehensive guide to investment throughout the diverse and industrially rich regions of Spain and Catalonia. ✖