The budgets for 2024 presented by the socialist government of Barcelona have not overcome even the first obstacle. Neither have tax ordinances. The disconnection between the government and the opposition, caused largely by the lack of definition surrounding the agreements for the investiture of Pedro Sánchez, has prevented the City Council from facing the final stretch of 2023 and knocking on the door of 2024 with the most important project in all those that correspond to an approved public administration. And it is not as a result of poor financial health. The rating agencies diagnose the opposite and a report from the Analysis department of the Municipal Data Office of the City Council confirms this reality with data fresh from the oven. Barcelona is today a city with a dynamic economy that, a victim of the political situation, could start the new year without an updated income and expense forecast.
The report prepared by municipal technicians dated last Tuesday exhaustively analyzes all the indicators of the Barcelona economy. In the statistics for the third quarter of the year, a moderation is observed compared to the first months of 2023, which were exceptionally positive. But, although less than a while ago, largely due to the tightening of monetary policy, all sectors continue to grow.
The report to which La Vanguardia has had access highlights that, although the dynamism of private consumption moderated in the third quarter of the year, thanks to the creation of employment and the greater stability of the labor market, the accumulated spending since December 1 January to September 30 “sets new highs and drives economic growth.” All sectors present positive figures compared to 2022, especially tourism and restaurant services.
Furthermore, the analysis of the disposable income of Barcelona households, in its most recent records, corresponding to the second half, indicates a strong nominal increase (14.1% year-on-year) and, taking inflation into account, the purchasing power even exceeds the excellent levels before the pandemic.
The behavior of the labor market is one of the aspects that most contribute to maintaining the good economic health of the city. After two months of a slight upward trend, unemployment experienced a small reduction in September, to the point that the 61,792 people registered on the unemployment lists in Barcelona represent the lowest figure in a month of September since 2007. Social Security affiliation (1,198,284 workers) is also recovering dynamism, only 0.8% below the record set last April.
The most recent statistics highlight the need to make a radical shift in housing policies, one of the biggest collective failures of recent years, a failure that the lack of municipal budgets for 2024 will not help alleviate. The rental supply cannot cope with the increase in demand and has caused the average monthly rent in the second quarter of 2023 in Barcelona for new signed contracts to register a historical maximum: 1,124 euros, 12.7% more than in the same period in 2022.
