As the capital and largest city, Madrid is the economic hub of Spain. A modern service economy, and home to over half a million companies, it boasts one of the greatest labour markets in Europe, leading the country in growth rates and direct foreign investment.
million active population
million inhabitants, the biggest city in Spain
of Spanish GDP generated by greater metropolitan Madrid
of GDP from services
jobs created by direct foreign investment
Madrid is the capital of Spain and its largest city with 3.2 million inhabitants (Ayuntamiento de Madrid) representing 7% of the national population. Beyond the city centre, greater Madrid has a population of almost 6.675 million and is the 3rd most important metropolitan area in Europe (Urban Audit). Only London and Paris are ahead of it in this ranking. Other researches consider that the metro area has 7.3 million people (15.4% of Spain) and 330 cities and towns. Millions of people commute into the centre for work daily from the towns and cities within this area.
Madrid city is the largest economic hub in Spain with an estimated GDP of € 133 billion, 12% of the national GDP, representing nearly € 41,810 per capita (Ayuntamiento de Madrid). The greater Madrid area generates 19% of the overall Spanish GDP (source: INE).
With an impressive per capita income of 45% above the EU average, Madrid is a rich, prosperous city. In recent years, growth rates have been higher than every other major Spanish city. Instituto L.R. Klein-Centro Stone’s forecast for Madrid city estimates continued growth of 2.8% in 2018 and 2.7% for 2019. Both the construction (3.5%) and services (2.8%) sectors are expected to be major contributors to this growth.
Madrid has one of the greatest labour markets in Europe. 80% de of the population aged 16 to 64 years old is active (source: EPA 1TR 2018).
More information can be found in the Madrid city council public reports on economic issues.
Madrid leads Spain in attracting foreign investments into the country. Between 2013 and 2017 the region received 51% of direct foreign investment overall. In 2017, that jumped to 61% (€ 14.5 billion), more than four times the level of investment in the Spanish region that took 2nd place.
Direct foreign investment creates over 333,000 jobs within the Madrid area (Ministry of Economy): 28% of the overall jobs that foreign companies create in Spain.
A large number of multinational companies have their headquarters in Madrid enabling access to all kinds of public and private organizations, including the vast range of professional services that are centralized within the Spanish capital (€ 224 billion investment stock in 2015). Greater Madrid is also home to many production plants (€ 20 billion in tangible fixed assets).
Madrid is a modern economy focused on services, which accounts for 88% of the city’s GDP (City Council). This mirrors greater Madrid’s main service sectors of: sales, transport, healthcare, social services, business services, hospitality, etc.
There are over 520,000 companies in the region (INE-DIRCE), 16% of the national total. Big companies are especially concentrated here: there are 3,200 companies with 100+ employees, which is 26% of the companies of that size in Spain. The bigger the company size, the higher its concentration: almost 40% of the companies with more than 500 employees are based here.
Below are some of the most concentrated sectors. More than 30% of Spanish companies belonging to these are located within greater Madrid (INE-DIRCE):