The Catalan economy has been growing above the euro zone average for five years. Last year it did so by 2.7%, driven by dynamic domestic demand, booming services and despite an industry that shuffled forward, partly due to wars, according to the Annual report of the Catalan Economy. Catalonia has, however, a stain on its record: a skyrocketing housing market that has become an “amplifier” of inequalities. The Generalitat considers that the maximum prices have allowed rents to be contained, but admits that the “regular rental segment has lost dynamism”, especially in Barcelona and in stressed markets. “Price regulation can help moderate the symptoms of the affordability crisis, but its long-term effectiveness depends on increasing affordable supply,” the document points out.
Continue reading
