MADRID - Economy
A crucial place for economy
The Madrid region's gross value-added made it the second largest contributor to Spanish GDP (exceeded only by Catalonia) in 2000. Looking at the sectoral structure of gross value-added, services (and more particularly market services) are prominent, contributing more than 75% of the total gross value-added of the region, the second highest share after Canaria. Industry generated 23.7 % of the gross value added of the region and agriculture only 0.2 %.
In recent years, manufacturing equipment and business management techniques have been modernized, resulting in greater quality and competitiveness in production and a more internationalised economy. The industrial sector has moved towards specialization in advanced fields such as telecommunications, electronics, pharmaceuticals, defence and aeronautics. At the same time, there has sprung up an ancillary industry of small and medium-sized enterprises which could greatly help future industrial growth. As regards services, business services such as software, telecommunications, auditing and consultancy services, and marketing are very much in evidence. It is also important to point out the enormous potential of the public and private R&D network, which accounts for more than 50% of Spanish investment in R&D and is substantially involved in large EU projects.
The presence of government offices and of the head offices of important national and international companies should be mentioned, a fact which confirms the Madrid region as a prime decision-making and logistical centre, favoured by a highly advantageous geostrategic situation. As a result, the Madrid region accounts for 29% of Spanish exports and 46% of direct investment from abroad.
Predominance of the services sector
The economic structure of the Madrid region, which is dominated by the services sector and more particularly market services, together with the minor role played by the agricultural sector, means that this region has high productivity levels reflected in high average wages.
In recent years certain manufacturing industries in the southern industrial belt of the capital have suffered badly, enabling companies involved in high-tech processes in the north and north-east to prosper considerably. At present, basic industry is overshadowed by the manufacturing industry, there being a high technological level which has been facilitated by the presence of many R&D centres. At the same time, it is noticeable that industry is increasingly specialized in high-demand sectors (aircraft, electronics, Pharmaceuticals, precision instruments and electrical engineering) or medium-demand (paper, transport and mechanical engineering).
The services sector contributes more than 75% of gross value-added and shows great dynamism thanks to the internationalisation of the economy promoted by entry into the EU. Within that sector, the distributive trades, hotels and catering, transport, banking and insurance are prominent. 10% of bank offices are to be found in the Madrid region and Spain's main stock exchange is located there.
Transport
There were 532 kilometres of motorways in 2001 in the region - representing an increase of more than 25% compared to 1990 ? and 2 710 kilometres of other roads. Still in 2001, 3.5 million cars were registered in the Madrid region, of which 2.9 million private cars.
Rail network measured 601.8 kilometres in 2001, a slight decrease compared to the 644 kilometres available in 1996. 82% of this network is electrified.
Air transport is very important in the region, as Madrid/Barajas was the fifth biggest airport of the European Union in 2001 in terms of passenger transport, with 33.9 million passengers carried and the ninth for freight transport, with 296 thousands tonnes carried. There are no ports in the region.
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