Spain’s consumption grows by 3% nominal at the expense of record low savings

However, in return, there’s a stabilisation of Spanish external debt at 163% GDP and international investment position at -98% GDP. In the case of households, the improvement of workers’ salary cannot compensate for the fall in the property income received (interests and dividends) and the greater payment of income taxes and social contributions (increase of the affiliation to the Social Security.

“The result was that disposable income in the 2Q14 was 0.8% lower than last year’s. If we consider a consumption growing at 3%, the savings rate has registered minimum levels at 9% income,” experts at Afi explain.

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