Economy

Barcelona and its region has been one of the powerhouses of the Spanish economy for over two centuries. Rapid further industrialisation in the 1950s and 1960s was followed by crisis in the mid 1970s, when much of the heavy industrial base of the city collapsed, and many of the remaining firms moved out into less cramped zones nearer the motorway network. The city is still however a significant industrial centre, with most of its production concentrated now in an area developed for the purpose, the Zona Franca, near the port and airport. But relatively more of the workforce now is in service sectors of one kind of another. This tertiarisation has been reflected in the urban transformations, with the central area (especially the Extension) now containing very many offices, and with new commercial and office areas zoned by the council within the city boundary, as "Areas of New Centrality", a policy adopted in 1986.

The economic crisis from the mid 1970s to about 1985 made it easy for the city council to buy large numbers of older industrial sites, and these, along with other redundant uses such as military barracks and religious buildings, provided the stock of land for most of the urban interventions of the succeeding years.

The economic boom of the 1985 to 1992 period on the other hand provided a context of economic euphoria, and rising tax revenues, which encouraged redevelopment by both public and private sectors.

The subsequent period saw a downturn in all sectors and areas, though with the public sector still pushing forward on some of the key schemes (the old city redevelopment, cultural projects, completing road networks). Since 1995 a relative upturn has seen some degree of reactivation of local property markets.

These economic phases are important in understanding the overall movement of investment in the city.