Fernando G. Urbaneja | The risk of recession is beginning to be seen in the data: in exports, as the outer circle of defence. If Germany sells less it also buys less; the powerful Spanish car components and machine tool industries are seeing a fall in orders and noting it is the time to cut back and not expand. Winter is coming and the house is not prepared.
CaixaBank Research | The strong growth in international tourism which Spain has experienced is having a positive impact on economic growth and employment. However, it is also generating impacts on the resident population which are not always positive, as shown by the increasing congestion in certain parts of Spain caused by the high numbers of tourists. This has revived the debate over the need to move to a higher quality of tourism.
What do we understand by quality tourism?
Miguel Navascués | The winner of the recent elections, Pedro Sánchez, defined his objective in the previous debates with great precision: to end the increasing inequality in Spain. But inequality is not the main problem in Spain, it does not even have the nature of a problem. To begin, it is not increasing.
Composite and Services PMI, which is elaborated by the consultancy IHS Marlon, exceeded expectations for Spain. The PMI for services rose from 54.5 in February to 56.8 in March compared to the expected 55.
More than 93% of German companies believe that the economic situation in Spain is ‘good’ or ‘satisfactory’, 25 points higher than two years ago. This is according to the bi-yearly survey “German Companies in Spain” published by German Chamber of Commerce for Spain in collaboration with the IESE Business School.
“With the recovery embedded we see greater scope for selective risk, taking on asset management in core locations while also considering opportunities in well connected edge of CBD overflow locations,” Deutsche AM Spanish Real Estate Strategic Outlook notes.
A favourable international situation can conceal Spain’s economy structural deficiencies. But if these were to disappear, the Spanish economy would have problems in balancing its public accounts and its financial position with the rest of the world.
The Corner | April 7, 2015 | Analysis from Barclays | Spanish composite PMIs rebounded to 56.9 (+0.9 point) in March, as services PMI overshot expectations (57.3) and manufacturing output remained broadly stable (55.5). The services sector’s solid performance (PMI at an eight month high) was primarily triggered by stronger new business.
MADRID | April 7, 2015 | By Fernando G. Urbaneja | There are two lingering black marks against the Spanish economy. The first is rampant unemployment, which is second only to Greece in the euro area and the OECD. The second is a large budget deficit-the largest in Europe-which remains stubbornly high and is still some way off the target of 3% of GDP. Against that backdrop, the Spanish economy has returned to stronger growth this year, with forecasts showing the economy could expand by as much as 3%.