As soon as the doors open, the economy of Madrid tends to regain muscle. This is what appears to be evidenced by the regional accounting data for the third quarter, from July to September, which shows a slight take off at the time the confinement was lifted and something close to normality recovered in economic activity.
According to the data provided by the Ministry of Economy, directed by Manuel Giménez, This Madrid situation grew in this third quarter by 25.5 percent, a very positive figure when compared to the previous one, in which there was a fall of 17.18 percent. After the strong restrictions that were imposed during the confinement, the return to economic activity in Madrid almost immediately translated into the beginning of its recovery.
In fact, Regional Gross Domestic Product (GDP) showed greater dynamism in the third quarter that of the country as a whole, and surpassed that of Spain by 9 points, which stood at 16.7 percent in the same period.
Return to a certain normality
Sources from the Ministry of Economy explain this change in trend in the reactivation of most of the activities in July, once the restrictions imposed by the confinement ceased in Madrid first and the de-escalation process – which was longer in Madrid than in other regions, as it will be recalled.
In addition, another summing element is the month of September, which as a general rule is a good month from the point of view of the economy, due to the return to school and work after the summer break.
Comparing with other regions, Andalusia has presented positive data for the third quarter although lower than those of Madrid, with an increase in GDP of 14.5 percent, while Catalonia also experienced a rise, of 15.7 percent, almost ten points below the Madrilenian.
This growth experienced by Madrid in the third quarter allows it to reduce the rate of year-on-year decline –that is, compared to the data for the same period of the previous year–, which in the case of Madrid stands at an 8.1 percent drop annual, six tenths lower than the national average, which is 8.7 percent. And also below those registered in Andalusia –8.5 percent year-on-year decrease–, the Canary Islands –19.8 percent drop– or Catalonia –which fell 9.1 percent.
By sectors, the one with the greatest boost has been construction, which experiences a growth of 28.1 percent. It is followed by that of services, whose activity increased by 24.7 percent, and where the branch of distribution and hospitality services stands out with an increase of 82 percent.
With regard to industry, it rises by 19.5 percent, but it is, of the large sectors, the one that comes closest to pre-crisis levels, registering a year-on-year drop of just 2.5 percent , according to official data.
Regarding regional demand, all its components are experiencing an intense recovery, compared to the collapse recorded in the second quarter. In particular, household consumption rose (up 47.5 percent) and investment somewhat softer (with a 21.1 percent rebound). On the contrary, external demand slowed down, and experienced a 1.3 percent drop.
As explained by the Madrid Minister of Economy to ABC, “these data show that we have a productive fabric that reactivates strongly as soon as they allow it ”, as reflected in this third quarter.
However, Manuel Giménez warns, “there is no room for triumphalism. There are still many sectors that suffer restrictions, companies and workers in ERTE, freelancers in cessation of activity or with notable losses in turnover that need the support of the administrations.
The regional governmentHe remembers, he has “deployed a network of measures to minimize the impact of this crisis”. He believes that only in this way will “Madrid once again be the economic heart of Spain”, he concludes.