Community of Madrid - Economy

Economy

The Community of Madrid has a GDP of €219.8 billion as of 2009; this is second in Spain only to Catalonia, where regional GDP amounted to €230.4 billion but ahead of the largest Spanish region - Andalucia -, where the regional GDP stands at €167.4 billion. Indeed, it is, along with the Basque Country, the autonomous community with the highest income per capita in Spain at €34,100 in 2009 - significantly above the national average and ahead of Navarra (€32,900), and Catalonia (€30,700). In 2005, the Community of Madrid was the main receptor of foreign investment in the country, at 34.3% of the total. Despite that, the community ranks 34th amongst all European regions (evaluated in 2002), and 50th amongst the most competitive cities-regions in the planet. Nonetheless, it is still ahead of Barcelona and Valencia, the other two largest metropolitan areas of Spain. The strengths of the economy of the community are its low unemployment rate, its high investment in research, its relatively high development, and the added-value services therein performed. Its weaknesses include the low penetration of broadband and new technologies of information and an unequal male to female occupation.

The service, construction, and industry sectors are prominent in Madrid's commercial productive structure. According to the Directorio Central de Empresas (Central Companies Directory of the INE), Madrid's active businesses stand in third place nationally in terms of numbers as at 1 January 2006. The branches of activity with most active businesses are other business activities, retail trade, construction, wholesale trade, hospitality, property activities, land transport, and pipeline transport. Madrid's levels of industry set it at fourth place in Spain. The following areas predominate in terms of business numbers: publishing and graphic arts, manufacture of metal products (except machinery and equipment), manufacture of furniture and other manufacturing industries, wearing apparel and fur industry, and food product industry. The province also boasts a higher concentration of high and medium technology activities and services than the rest of Spain. This is the case in the following areas: manufacture of office machinery and IT equipment; manufacture of electronic products, manufacture of radio equipment, and devices; manufacture of medical and surgical, precision, optical and timekeeping equipment and instruments; post and telecommunications; IT activities; and research and development.