Community of Madrid
Madrid exhibits capital-city concentration: 14.4% of population generates €316B GDP with Spain's highest per capita (€44,749), hosting 72% of largest company HQs.
The Community of Madrid functions as Spain's gravitational center—a capital region that captures resources from the entire national economy through headquarters concentration and financial intermediation. With 7.1 million inhabitants (14.4% of Spain), it generates €316 billion in GDP (2024), claiming the country's highest per capita output at €44,749—36% above the national average. The EU's fourth-largest regional economy by 2023 Eurostat data, Madrid demonstrates how capital cities can extract disproportionate value from nations they govern.
The services sector accounts for 89% of Madrid's productive activity, with finance at its core. In 2008, 72% of Spain's 2,000 largest companies headquartered here; all major Spanish banks (Santander, BBVA, Bankinter), the stock exchange, and international institutions (Inter-American Development Bank, European Investment Bank) operate from Madrid. Between 1993-2017, six of every ten euros of foreign investment entering Spain landed in this single region. This concentration resembles ecological center-periphery dynamics where central nodes capture flows passing through the system.
GDP growth forecasts for 2025 (2.7-2.8%) exceed the national average, with unemployment potentially falling to 8.1% by 2026. The 135,000 new jobs projected for 2025-2026 will likely come from professional services, technology, and finance—sectors that compound Madrid's advantages through network effects. Yet this concentration creates fragility: the region's prosperity depends on maintaining its status as Spain's gateway to global capital, a position that requires continuous investment in connectivity, talent, and institutional prestige.