Fewer companies, but better competition

The number of companies operating in Spain shrank by 1.6% in 2011. This figure disappoints, particularly because it marks the fourth consecutive year of falling commercial activity and rampant job cuts for small- and mid-size businesses.

The figures, which came from the National Employment Institute, also confirm that the construction sector is still cutting back and that the Spanish economy is relying on its service industry.

Despite fewer companies, competition among extant companies increased in the second quarter of the year as prices fell and exchange rates strengthened. Strengthening their competitive edge is the life jacket that Spanish companies need to strap on as they prepare for the economy to jumpstart in 2014.