Economia 1970

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3.1.4 Economy
In 1977, the data showed that the Spanish economy was in depressed state; it was characterized by a stagnation of productive activity, GDP growth in 1976 1’5%, 800.000 unemployedpeople and high levels of inflation.(20%)
With the oil crisis started in 1977, in Spain and Catalonia there was a social revolution, a wave of strikes that led to increase the tension betweengroups of people.
Now, the situation is similar; the world crisis affects directly the Spanish economy, nowadays we have 4.422.359 unemployed people and in Catalonia, there is a 20’5%unemployed people. The GDP in Spain recorded a growth of 0’7% in the third quarter of 2011 in Catalonia and in Spain 0’8%
In 2011, the rate of index of prices in Catalonia there was a 2’5% of differenceand in Spain 2’4% of difference.
We have responded to changes in index of prices and also in the level of GDP, offering the same pizzas but with less quality and behind another brand asHacendado in order to maintain our level of annual facturation; this point in the actual situation of the economy is a strength for us because, as we offer the SAME product at a less price, we willmaintain the same number of customers and may be, we will take some new customers who now are able to buy our pizzas. So at all, we consider this fact as an opportunity.
In order to see thedifferences with our near competitor, Campofrio, we cannot compare with us because the market is very different; campofrio exports their products in Europe and we just sell all around Spain.

3.1.6Taxes
On taxes, the Spanish government collects every year taxes and social contributions (including imputed social contributions); in 2010(the last one we have) is 32’9%. With the actualcrisis, the government has deficit or what is more, debt, in 2010 the debt is about -9’3%.

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