Madrid and Barcelona are saved from the pause in consumption until 2026
Madrid and Barcelona, against the current. The two Spanish cities are the only ones that will be saved from the blow that inflation, uncertainty and the war in Ukraine have caused in consumption. Spending in both locations will continue to rise annually through 2026, according to a report by Oxford Economics.
The rise in prices throughout Europe will cause consumption in cities such as Rome, Paris, London, Berlin, Warsaw or Brussels to moderate in the coming years with increases lower than those of 2022. While in Madrid and Barcelona consumption is expected to grow by around 4% per year until 2026, compared to the current 2.5%, in capitals such as Lisbon consumer spending will grow only one 2% per year, compared to the current 6%.
In the European Union as a whole, consumer spending will register a rebound of 3.6% in 2022 thanks to the savings made during the year of the pandemic. In addition to consumer spending, Oxford Economics also anticipates that the Gross Domestic Product (GDP) of Madrid and Barcelona will also register a rise above the European average in 2022.
“Both cities posted large losses in 2020 and only partially recovered in 2021, so the outlook reflects a continued rebound in certain sectors,” notes Oxford Economics. The organization adds that both cities have “underperformed” so far due to slower growth in business sectors..
In Madrid and Barcelona, consumption is expected to grow by around 4% per year until 2026
In Madrid, the GDP will grow by 3.5% annually until 2026 and it will surpass the Catalan capital thanks to the greater concentration of ICT, professional and administrative services. Barcelona’s economy, for its part, will be boosted thanks to the return of tourism and the revitalization of the hospitality and recreation sectors.
specific, the GDP of the Catalan capital will experience an annual growth of around 3% until 2026 Despite its high dependence on the sector of hospitality and manufacturing, more exposed to disruptions in supply chains.
Other European cities that will benefit the most from the return of tourism are Amsterdam and London. Otherwise, growth in Paris, Munich and Berlin “will be slightly lower” than in other capitals.
According to Oxford Economics, The European cities where the GDP will grow the most in 2022 will be Lisbonwith a rise of about 8%, Budapest, with an increase of 7% and Amsterdam, with a rise of just under 7%.
Madrid and Barcelona are in fourth and fifth place, respectively, behind Warsaw. The GDP of the Spanish capital will grow by 5% this year, while the economy of the city of Barcelona will register a slightly lower increase.