Madrid AC

Madrid’s economy has remained highly buoyant in recent years, only surpassed by the island regions. The robust performance of GDP in 2023, with estimated growth of 3.0% (2.5% in Spain), was supported by buoyant market services and strong employment, which, coupled with the upturn in foreign (city) tourism, boosted consumer spending. 

Content available in
July 7th, 2023
Madrid
7,000,000
inhabitants (2023)
€38,435
GDP per capita (2022)
19.4%
of Spanish GDP (2022)
2.2%
anticipated growth in GDP (2024)
Regional economic structure and position
  • The Madrid Autonomous Community has the largest GDP. Furthermore, its higher relative growth has allowed the region to gain importance and it has increased its share of Spanish GDP to 19.4% from 17.7% in 2000.
  • The region has had great demographic dynamism in recent decades, thanks to migration flows both from abroad and from other Autonomous Communities. With 7 million inhabitants, 14.3% of the total population, it is the third most highly populated region.
  • GDP per capita stands at 38,435 euros, the highest in the country and 36.5% above the average. In recent years, its relative position has followed a slight downward trend, due to strong population growth.
  • In terms of sectoral composition, the region is notable for the relative importance of professional and industry-related services (40.5% vs. 28.5% on average in Spain), whereas agricultural activities (0.1% vs. 2.6%) and manufacturing (6.3% vs. 12.5%) account for smaller shares of GDP.
  • Reflecting the reduced importance of manufactured goods, this region is not a major exporter, with exports of goods accounting for 22.6% of GDP (28.9% in Spain); despite this, it is the region with the second-highest volume of exports, totalling 51.592 billion euros in 2023 (12.4% of all exports). The main export sectors are chemical products (27.5% of the total), especially pharmaceuticals, energy products (13.7%) oil products and electricity, which are recorded by the companies and transport equipment (9.9%). Madrid exports 54% of all of Spain’s engines, 36% of its office and telecommunications equipment and 22% of its chemical products.

Table of structural indicators

 

  

1992

2002

2012

 

2022

GDP per capita

Euros

 

12,753

24,023

30,358

 

38,435

100 = Spain

 

130.3

132.8

137.7

 

136.5

Population

Thousands of inhabitants

 

5,030

5,639

6,412

 

6,872

Average annual growth over the decade (%)

 

0.5

1.1

1.3

 

0.7

% of total in Spain

 

12.8

13.5

13.7

 

14.3

% of population > 65 years old

 

12.3

14.4

15.9

 

18.4

Exports of goods as a proportion of GDP

%

 

10.8

14.3

 

22.6

 

 
Macroeconomic situation

Madrid’s economy has remained highly buoyant in recent years, only surpassed by the island regions. The robust performance of GDP in 2023, with estimated growth of 3.0% (2.5% in Spain), was supported by buoyant market services and strong employment, which, coupled with the upturn in foreign (city) tourism, boosted consumer spending.

In 2024, we expect a slowdown in activity, with GDP growth of 2.2%, which is still higher than the growth rate forecast for Spain as a whole (1.9%). Madrid’s economy will benefit from favourable conditions, with prices and interest rates easing, households in a sound financial position, a dynamic labour market and an expansionary fiscal policy in the region. Furthermore, due to its strong focus on high value-added business services, the region is well positioned to capitalise on the boost in investment being provided by European funds.

GDP

Last actualization: 10 April 2024 - 14:36

It has been among the most buoyant regions in terms of employment. In 2023, the number of registered workers affiliated to Social Security rose by 3.9% (2.7% in Spain), while at the start of 2024 it continues to grow at a faster-than-average rate (3.6% year-on-year in March vs. 2.6%), thus far exceeding pre-pandemic levels (14.1% vs. 9.8%): job creation in professional activities, healthcare and general government has been outstanding over the last year. In terms of the unemployment rate, it stood at 9.7% in Q4 2023, below the average (11.8%) and pre-pandemic levels (10.0% in Q4 2019).

Consumption is also performing well, although it has certainly been more muted in recent months. Thus, after recording the highest growth of all mainland regions in 2023 (5.2% vs. 2.9% in Spain), the volume of retail trade increased by 2.6% in January-February this year, slightly below the average (3.2%), 13.3% higher than it was in 2019 (vs. 3.5%).

Industrial production, of little importance in the region, recorded some of the best figures in the country in 2023
rising by 2.1% whereas it fell by 1.4% in Spain. In January this year, the rate picked up to 2.9% year-on-year (vs. 3.6%), so it was 5.6% higher than in 2019 (vs. –2.4%).

Exports of goods shrank by 12.7% in 2023 (vs. 1.4% in Spain), weakened by the sharp decline in medicines (due to vaccine exports returning to normal after the pandemic) and energy (the extraordinary sales of electricity in 2022 were not repeated, having benefited from shutdowns in the French nuclear fleet and the drought in Portugal). In January of this year, despite a further downturn (–23.6% year-on-year vs. 2.5%), they are 57.5% higher than in January 2019 (+29.5% in Spain). In terms of tourism, 7.8 million foreign tourists visited the region in 2023, spending 13.366 billion euros, an increase of 2.7% and 27.9% more than in 2019.

Registered workers affiliated to Social Security

Last actualization: 10 April 2024 - 14:38

Exports of goods

Last actualization: 10 April 2024 - 11:54

Table of indicators

 

 

2008-2013 average

2014-2019 average

2020

2021

2022

2023

2024

Latest figure

Activity and prices

Real GDP*
(% year-on-year change)

–0.9

3.6

–10.4

6.0

7.2

3.0

 

2023

–1.8

2.8

–11.2

6.4

5.8

2.5

 

Retail trade
(% cumulative annual change)

-4.8

4.1

–2.6

7.3

2.3

5.2

2.6

February-24

–5.2

2.3

–5.2

3.6

0.8

2.9

3.2

Industrial production index
(% cumulative annual change)

–7.3

2.4

–6.6

5.4

6.9

2.1

2.9

January-24

–5.3

1.8

–9.2

7.1

2.5

–1.4

3.6

Service activity index
(% cumulative annual change)

–5.2

6.1

–18.3

20.3

22.8

–1.9

–1.2

January-24

–4.6

5.1

–15.6

22.0

18.3

2.2

2.8

Consumer price index
(% year-on-year change)

1.7

0.7

–0.4

2.7

7.5

3.0

2.6

February-24

1.7

0.7

–0.3

3.1

8.4

3.5

2.8

          

Labour market

Registered workers affiliated to Social Security
(% year-on-year change)

–2.5

3.7

–1.3

2.7

4.7

3.9

3.6

March-24

–3.1

3.2

–2.1

2.5

3.9

2.7

2.6

Registered workers affiliated to Social Security not affected by furlough
(ERTE in Spanish) (% year-on-year change)

–2.5

3.7

–8.5

7.9

7.6

4.6

3.9

March-24

–3.1

3.2

–9.2

7.3

7.3

3.4

3.0

Unemployment rate
(% working population)

15.5

14.6

12.5

11.6

11.2

10.2

––

Q4 2023

20.2

18.8

15.5

14.8

12.9

12.1

––

Unemployment rate for under 25s
(% working population < 25)

37.7

38.0

31.8

29.3

29.3

28.2

––

Q4 2023

42.5

42.5

38.3

44.7

23.9

27.2

––

          

Public sector

Public deficit
(% of GDP)

–1.2

–0.8

0.0

0.3

–0.7

–0.7

––

2023

–2.7

–0.9

–0.2

0.0

–1.1

–0.9

––

Autonomous Communities public debt
(% of GDP)

8.0

14.1

15.8

14.5

13.3

12.6

––

Q4 2023

12.3

24.1

27.2

25.6

23.6

22.2

––

          

Real estate market

Housing prices
(% year-on-year change)

–9.2

8.4

1.7

2.5

6.8

3.9

––

Q4 2023

–8.1

5.3

2.1

3.7

7.4

4.0

––

Housing sales
(% cumulative annual change)

–6.9

10.0

–18.5

38.3

3.2

–16.1

–11.6

January-24

–10.8

9.7

–16.9

34.8

14.8

–9.9

–2.1

          

Foreign sector and tourism

Exports of goods
(% cumulative annual change)

7.1

2.4

-5.5

35.3

48.2

–12.7

–23.6

January-24

4.6

3.9

–9.4

20.1

22.9

–1.4

–2.5

Tourist overnight stays
(% cumulative annual change)

0.9

5.7

–68.6

68.5

68.7

12.9

9.5

February-24

0.7

3.0

–69.2

78.3

73.3

7.2

7.6

Note: *The 2023 GDP figure for Autonomous Communities is an estimate made by CaixaBank Research.

Source: CaixaBank Research, based on data from the National Statistics Institute (INE), the Bank of Spain, the Ministry of Labour, Migration and Social Security (MITRAMISS), the Ministry of Finance and DataComex.

Regional comparison

Below we show a series of charts comparing the main indicators for the various regions.

Regional comparison

Last actualization: 04 July 2024 - 08:30