J.L. M. Campuzano (Spanish Banking Association) | The Spanish economy’s deleveraging process is still ongoing. But the data for Q3 shows different trends in financing capacity depending on the sector.
In short, the Spanish economy’s financing capacity was 7.6 billion euros in Q3, up from 7.1 billion a year earlier, and representing 2.8% of GDP. That said, its Spain’s banks and Public Administrations which have registered this increase in financing capacity, while companies’ have seen a reduction compared to last year’s figures. And the financing needs of families have almost doubled.
Households’ savings rate fell 1.8% in Q3, as a result of a 2.6% increase in spending. Taking the average over four quarters, the households’ savings rate declined to 8.2% from a previous 8.5%. Households’ investment also increased strongly, registering a 16.1% rise.
So are consumption expectations improving? Very lax growth and financial conditions. The Spanish banks can maintain a high flow of investment, with interest rates at record lows. All of this while they continue to adjust their balance sheets.
