The construction and promotion sector represents 7% of the Catalan GDP

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The construction and promotion of housing already represents almost 7% of Catalonia's GDP. This is confirmed by the monograph "The construction and promotion sector in the Catalan economy", from the Future Housing and Business Chair of the Pompeu Fabra University (UPF) and the Association of Developers and Builders of Catalonia (APCE). The document calculates the economic impact of the sector's activity on the Catalan economy: production, gross value added (GVA) as an approximation to the gross domestic product (GDP) and employment, as well as tax collection. The report indicates that the activity of the sector generates a production of 47,221 million euros, a GVA of 24,300 million euros and a total of 398,647 full-time equivalent jobs (FTE). The GVA figure represents 11.9% of the total, a value that represents a drag effect on the sector equivalent to of the Catalan GDP.

The study indicates that the promotion and construction sector in Catalonia generates 400,000 jobs The activity generated by the sector directly, indirectly and induced also represents fiscal income via taxes (VAT, Personal Job Function Email Database Income Tax and Corporate Income Tax) and Social Security contributions of 7,056 million euros. In fact, it is estimated that 20% of the price of the house is a tax expense, including state, Catalan and municipal taxes. Another objective of the study is to calculate the links between construction and development with the rest of the productive sectors. Thus, each euro spent in Catalonia by the sector generates 0.89 euros of GVA in the Catalan economy as a consequence of the direct and indirect effect, and 1.29 euros if the induced effect is added. Consequently, construction and development can be considered as an engine of the economy.



Total accumulated impact on production, GVA, employment and tax revenues of the construction and promotion sector (2016) Source: Own elaboration based on MIOC 20216 The study also shows that if the construction and promotion sector stopped acquiring its intermediate level inputs in Catalonia, there would be a 1% drop in the GDP (added value) of the Catalan economy (carrying capacity). Likewise, the rest of the sectors will stop acquiring inputs from the sector, the drop in the production of the Catalan economy would be 2% (support capacity). The study also indicates that the weight of the construction and promotion sector in the Catalan economy has changed considerably in the last 20 years. The gross added value (GVA) of the Catalan economy increased considerably until 2006 (11.90%) and, from then on, an adjustment process began until it was around 5%, a percentage that has remained relatively constant since 2013 to present.