Assessment and Recommendations
Abstract:Madrid has captured advantages of globalisation by becoming a Metroregion of 6 million, which attracts foreign workers and firms. Since the mid‐ 1990s, the capital region of Spain has enjoyed one of the highest expansions in population and economic growth within Europe and among OECD metropolitan areas. From 1995‐2005, the metro‐region has registered an average annual growth rate of 3.7%, above Spain's 3.3%, and growing at twice the average of the European Union for the same period. This economic boom has made the metro‐region a magnet for workers, both at the national and international level (population grew by 15.4% over 2000‐2006 in Madrid), with an influx of foreign migrants, mainly coming from Latin American countries. From 2000 to 2006, 760 000 new jobs were created and unemployment declined from 11.6% to 6.5%. Today, the capital region concentrates more than 13.5% of the national population and generates above 17% of Spain's output. Madrid is the Spanish financial centre, concentrating around one‐quarter of total savings and responsible for around two‐thirds of both total inward and outward foreign investments (from 2002 to 2004, Spain was the 6th largest recipient of FDI worldwide and the 5th largest in Europe).
Document Type: Review Article
Publication date: September 1, 2007