Madrid is situated in central Spain and the capital of the province of Madrid is the city of Madrid which is also the capital of Spain. The community of Madrid is third most populous of all of Spain and has many tourist friendly businesses. Madrid’s economy is similar to the of Catalonia ( Barcelona ) which remains Spain’s largest and therefor Madrid has GDP per capita in Spain. Madrid enjoys hot summers with its mediterranean climate but still has colder winters where the temperature can drop below 0. It’s average temperatures are lower than other areas because of its cooler nights. This happens because of the high altitude of Madrid.