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For innovation, Madrid is ranked 19th in the world and 7th in Europe from 500 cities, in the 2022-2023 annual analysts Innovation Cities Index, published by 2ThinkNow.

It concentrates the bulk of banking operations in the country and it is the Spanish-speaking city generating the largest amount of webpages. The metropolitan area hosts major Spanish companies such as Telefónica, Iberia, BBVA and FCC. Due to its economic output, high standard of living, and market size, Madrid is considered the major financial centre and the leading economic hub of the Iberian Peninsula and of Southern Europe. The Madrid urban agglomeration has the second-largest GDP in the European Union and its influence in politics, education, entertainment, environment, media, fashion, science, culture, and the arts all contribute to its status as one of the world's major global cities. The climate of Madrid features hot summers and cool winters. The city is situated on an elevated plain about 300 km (190 mi) from the closest seaside location. Capital city of both Spain (almost without interruption since 1561) and the surrounding autonomous community of Madrid (since 1983), it is also the political, economic and cultural centre of the country. Madrid lies on the River Manzanares in the central part of the Iberian Peninsula. The municipality covers 604.3 km 2 (233.3 sq mi) geographical area. It is the second-largest city in the European Union (EU), and its monocentric metropolitan area is the second-largest in the EU. The city has almost 3.6 million inhabitants and a metropolitan area population of approximately 6.7 million. Madrid ( / m ə ˈ d r ɪ d/ mə- DRID, Spanish: ) is the capital and most populous city of Spain.

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