Madrid City Review

Cities

About This Report

Nov 2017

Madrid is Spain's capital and the country's largest metropolis. With 6.4 million residents in 2016, it accounted for 14% of the Spanish population, compared with Barcelona's 12%. In terms of GDP per capita, it fared 16% above Barcelona and 31% above the rest of the country in 2016, but moderately by Western European standards. Unemployment, albeit low by Spanish standards, remains a concern, as the number of jobs dropped by 3.6% in 2016, depressing household incomes by 7.5% in real terms.

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Madrid City Review

MADRID HIGHLIGHTS

The city's prominence in business services (this sector provided 22% of the jobs in Madrid, versus 13% elsewhere in Spain, on average) contributes to the superior labour productivity in Madrid compared with other parts of Spain: 31% higher in 2016. Labour productivity (hence wealth in general) in Spain's capital city is below the median of the values in first-tier Western European metropoles.

Lower unemployment rate and higher labour force participation help boost incomes

In 2016, per household disposable income in Madrid was 21% higher than in the rest of the country. The unemployment rate of 16% in 2016 was notably lower than in the rest of Spain (20%). Also, higher labour force participation (78%, versus 74% in the rest of Spain, was employed or actively searching for a job) also contributed to higher incomes in Madrid.

Food is affordable

Despite the advantage in earnings, Madrid's households spent on average 3.6% more on consumer items (excluding transport and housing) in 2016. Food is, however, affordable in Madrid: households in the city spent 15% less than those outside the capital city in 2016. This allowed Madrilenos to spend significantly more on education (52% more than elsewhere in Spain).

Slightly more expensive city to live in compared with the rest of the country  

Combined spending on housing and transport (measured per household) was 27% higher in Madrid compared with the rest of the country in 2016, making the city slightly more expensive than the rest of Spain, given its 21% higher disposable income.

MADRID REVIEW AT A GLANCE

Understanding Madrid Review structure
Chart 1 Overview
Key facts on Madrid
Summary 1 Key Facts On Madrid 2011, 2016, 2021

MADRID HIGHLIGHTS

History
Delimitation of the metropolitan region
Chart 2 Map Of Madrid Metropolitan Area
Main business districts

ECONOMY OF THE CITY

Industrial make-up
Chart 3 Industrial Composition Of Madrid 2016
Chart 4 Labour Productivity: Selected Cities 2016
Recent developments and outlook
Chart 5 Dynamics Of Real GDP In Madrid, Spain And Other Cities In Western Europe, 2011-2021
Summary 2 Labour Market Changes In Madrid 2011, 2016

CONSUMER PROFILE

City demographics
Chart 6 Population By Age 2016
Chart 7 Drivers Of Population Growth In Madrid 2011-2016
Household income
Chart 8 Household Distribution By Income In Madrid 2016 And 2021

CONSUMER EXPENDITURE

Structure of household budget
Chart 9 Comparison Of Household Expenditure In Madrid And Spain, 2016
Summary 3 Madrid Household Budget Structure By Consumer Expenditure Item, % of total, 2011, 2016, 2021
City lifestyle
Second Best Shopping City In Europe
Not Yet A Bicycle-Friendly City
City affordability
Housing
Chart 10 Household Expenditure On Housing: Selected Cities 2016
Transport
Chart 11 Household Expenditure On Transport: Selected Cities 2016

DEFINITIONS

APPENDIX

Summary 4 GDP Development, 2011, 2016, 2021
Summary 5 GDP By Origin, Current Prices, US$, Million, 2011-2016
Summary 6 Population And Labour Force, 2011-2016
Summary 7 Employed Population By Economic Sector, % of total, 2011-2016
Summary 8 Population By Sex And Broad Age Groups, ‘000, 2011-2016
Summary 9 Population Growth, 2011-2016
Summary 10 Forecast Population Growth
Summary 11 Population By Educational Attainment, 2011-2016
Summary 12 Structure Of Consumer Expenditure By Main Category, 2011-2016
Summary 13 Consumer Expenditure By Main Category, Per Household, Constant (2016) Prices, US$, 2011, 2016, 2021
Summary 14 Households By Income Band, % Of Total, Constant (2016) Prices 2011, 2016, 2021
Summary 15 Households By Income Band, ‘000, Current Prices 2011-2016
Summary 16 Inflation, 2011-2016
Summary 17 Transport Indicators, 2011-2016
Summary 18 Air Pollution, Concentration In Micrograms Per Cubic Metre, 2011-2016
Summary 19 Possession of Consumer Durables, % of Households, 2011, 2016, 2021