The deficit of Spain´s public administrations was 3.1% of GDP last year, the highest in the European Union, above the 3% registered by Portugal, and followed by Rumania (-2.9%), France (-2.7%) and Italy (-2.4%). This is according to the data published by the European Statistics Office, Eurostat, which has downgraded by two points Spain´s public debt to 98.1% of GDP.
Spain public deficit
Many argue that Spain lacks a proper government, with the one in office proving unable to secure parliamentary backing for the 2018 general budget.
The European Central Bank (ECB)’s non-conventional measures contributed 1,7 percentage points to Spain’s real GDP growth between 2014 and 2016, while also helping to cut the public deficit by 1,9 percentage points over the same period.
The trend in the variables observed indicates that the recovery of the Spanish economy continued during the first half of 2016. With nearly 80% of the information available for 2Q16, the MICABBVA model estimates that quarterly GDP growth (QoQ) will have completed one year at around 0.8%. If confirmed, this stabilisation in the pace of expansion would give an upward bias to the growth envisaged in BBVA-Research’s baseline scenario for 2016 (2.7%).
On the same day as Spain’s Economy Minister De Guindos announced new economic forecasts, which for some were completely off-the-wall, the government also announced that it will give civil servants back half of the extra payment which was suspended in 2012, worth over 550 million euros.
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Total gross issuance had to reach €199.5 billion, but the government had placed €200.9 billion of sovereign debt as of Wednesday.
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