spanish economy

The Spanish Economy Has Entered Deflation After The Health Crisis

Link Securities | According to preliminary data from the Spanish National Institute of Statistics (INE), the Consumer Price Index (CPI) fell to -1% year-on-year in May (-0.7% in April). The drop reflected the decline in fuel and oil prices, while food prices continued to rise. May inflation has not seen a decline to -1% since 2016. We do not rule out that the entire Eurozone could end up heading into deflation over the coming months, at least those economies most penalized by the pandemic.


Spain’s Financing Needs Rise To €130 Bn In 2020; Well Off The €32.5 Bn Initially Planned For This Year

Intermoney | What is clear is that the finances of countries like Spain are only sustainable thanks to the ECB’s very important support. And also thanks to the EU’s action which is much better than in the previous crisis. If the German and French Recovery Plan, based on subsidies, is successful, Spain’s need for financing will be lower; in other words, Community transfers would help keep net financing well below the 130 billion euros target.


The challenge for Spanish banks in 2019: improve profit margins, still at historic lows

Public Debt Will Be A Headache For The Spanish Economy: It Is Already Close To 100%

According to data released yesterday by the Bank of Spain, overall government debt reached 1.224, 243 trillion euros in March. It increased by 22.473 billion euros (+1.9%) from February due to the Covid-19 crisis. So public debt is now at an all-time high and equivalent to 98.3% of 2019 GDP. All organisations highlight in their forecasts that public debt will rise above 100% and set new historical records.


Housing Prices in Spain Could Fall 6% In 2020

COVID-19 will result in a slowdown in housing transactions of -35% – up to 326.000 transactions in 2020, returning to minimal levels (2012 to 2014). Home buying decisions will be postponed by 6-12 months, and some of the demand will disappear for longer, producing a temporary imbalance between supply and demand.


Spain employment

Spain’s Hotel And Restaurant Sector’s GDP Will Fall By Up To 20%

Funcas | The sectors most directly affected by the shutdown – retail, hotel accommodation, restaurants, cultural and sporting activities and personal services – account for 15% of GDP alone. And they also have a ‘snowball effect’ on the rest of the sectors equivalent to 6% of GDP, according to our forecasts’ update for 2020 and 2021.


Spain's government

What If There Is A V-Shaped Recovery?

A glimmer of hope in the macro scenario managed by Banco Santander’s Research team. Compared to more somber estimates such as those from the Bank of Spain or BBVA Research, the experts at Santander Corporate & Investment do believe in a V-shaped recovery.Banco Santander’s base scenario envisages a 5.2% fall in Spanish GDP this year compared with 8.3% growth in 2021.


Historic Drop In The Oil Price: How Will It Affect The Spanish Economy?

Caixabank Research | A fall in the price of oil provides a boost to the economy of countries that are net importers of crude oil, as is the case for Spain. Cheaper oil equates to an increase in the real disposable income of households, such that it also supports aggregate consumption. However, the health crisis that has gripped us following the COVID-19 outbreak will result in this boost derived from a lower oil price not being reflected in the economy, at least for the time being.


Private Debt, At A Minimum Since 2003, May Be A Key Tool For Spain In The Face Of The Coronavirus Crisis

Bankia Estudios | One of the Spanish economy’s strengths with which to face the devastating crisis unleashed by Covid-19, compared to the previous financial crisis of 2008-13, is the private sector’s healthier starting position. In this respect, families and companies’ consolidated debt stood at 129.7% of GDP at end-2019, the lowest figure in 16 years and 63.5 percentage points below the 2007 level. Corporate debt also falls to a low of 16 years in GDP terms (72.8% vs the previous 75.1%).


Coronavirus Shatters Spain’s All-Time Unemployment Rise Record: 302,365 People Lost Their Jobs in March

In the face of the economic slowdown due to the restrictive measures in place to stop the spread of Covid-19, Spanish companies laid off or terminated contracts for over 302,365 workers in March, which is more than 50% higher than the negative milestone of January 2009 (at the start of the last economic crisis) when there were almost 199,000 unemployed.This brought the total number of unemployed to 3.548.312. Finally, Spain’s labour market have lost 833,979 members up to March 31.


Spain: The Government Makes Sure Recession Turns Into Depression

A.J.A | Last Friday 27, after a cabinet meeting, the Spanish government issued a decree prohibiting companies from firing employees by “taking advantage of the coronavirus” (sic). with absurdities such as this one, it ensures that the recovery will not be in a V shape, or even in a U shape, but that the country will get into a prolonged crisis in L.