After several sluggish years by their own standards, the emerging economies’ growth rates have once again started to speed up. As seen by Caixabank’s strategists, “the first hesitant signs of this turnaround could be seen in 2016, becoming much more evident in 2017. Emerging growth rates are now expected to consolidate at around 5% over the next few years.”
Articles by Julia Pastor
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From 15:25 last Friday afternoon, when the Catalan Parliament made its unilateral declaration of independence, events have speeded up. Three hours after the solemn, but sad proclamation, the Republic of Catalonia disappeared into thin air. Mariano Rajoy dissolved the regional parliament and fired Carles Puigdemont’s government by implementing Article 155 of the Spanish Constitution in the Senate. And the biggest surprise: a call for elections on December 21.
The next chapter of the “Catalan saga” was revealed today. Prime Minister Mariano Rajoy has now warned that on Saturday article 155 of the Constitution will be implemented to suspend Catalonia’s autonomy. And amid this endless craziness, Puigdemont says that if this finally happens, the declaration of independence will be declared.
Justin Irving | A banal assertion is often made in the financial press when trade deficit figures are released. If the deficit widens, the financial media will tell you that this is bad for the current-quarter GDP number. If the deficit narrows, you’ll hear the opposite.
In 2016, Spain was once again the European country which received the most funding from the European Investment Bank (EIB), for a total of 11.5 billion euros, in terms of investment per unit of GDP or, in other words, in relation to the size of its economy.
It was expected Draghi to avoid any discussion of early exit from QE and he did so. The ECB’s president stuck to the December line. “Self sustained”, not “transient” inflation is wanted. Still, things may complicate this spring.
The British community in Spain is the largest in the EU: there are 297,000 Britons resident in Spain, according to January data from the National Statistics Institute. After the political earthquake created by Brexit, a large part of this community is now seeking dual nationality from the Spanish government to protect their rights as European citizens. For this to happen, there will have to be a change in the Spanish law.
Following the oil price slump, both wealthy countries will relatively see their privileged economic position trimmed, but they can still capitalize on their status as oil producers, boosting production to defend market share and leading the European M&A market, respectively.
After the IMF warned about the structural reasons behind the emerging economies’ slowdown, José Luis Herrera, Spanish analyst at CMC Markets, talks about possibles solutions for commodities’ producers.
While Yellen bet on increasing rates, China’s slowdown concerns Draghi, but he is not considering further stimulus for the time being, says Gabriel Marqués at Intermoney.