The invisible virtuous circle
Why can’t Spain’s current strong growth be sustainable?
In Spain
Spain Q2 GDP growth outpaces most of eurozone
MADRID | Global GDP showed a moderate growth recovery in the second quarter. In Spain, forecasts point to GDP growth accelerating again to 1% Q0Q, one of the highest rates in the eurozone.
Fiscal rectitude lags behind in Spain
Spain’s public deficit ranks as the highest one in the eurozone, with the exception of Cyprus. Up to now, a set of exceptional circumstances has allowed for a stance of benign neglect at visible cost. But dangers loom ahead if fiscal rectitude is not firmly enforced.
Spain in “solid recovery mode” (Barclays)
The Corner | July 23, 2015 | The Spanish economy grew by 0.9% q/q in Q1 15. Q2 data suggest that activity accelerated to 1.1% q/q, taking full-year 2015 growth to 3.3%, on Barclays estimates. “We think that the risks to the Spanish growth outlook are balanced, especially as the likelihood of Grexit has dropped,” the bank analysts commented on their July economic bulletin.
Spain business confidence up by 2.4% in 3Q2015
The Corner | July 10, 2015 | Spanish business confidence increased by 2.4% in the third quarter of 2015 compared to the second quarter, according to official data. Sentiment improved in all industries for ten months in a row, especially in restaurants and hotels, with an increase of 3.8%.
Spain growth will beat US in 2015 (IMF)
The Corner | July 9, 2015 | Updating its World Economic Outlook, the International Monetary Fund cut its world growth forecast (3.3 %from 3.5%) in 2015, downplayed the Greek drama and said it expects Spain to grow more than the US.
Spain employment 2015: More temporary and part-time workers, lower wages
MADRID | July 5, 2014 | By Fernando González Urbaneja | It’s been one of the costs of the crisis: an internal wage devaluation. Over the last year and half of the economic recovery, with the country’ GDP growing more than one percentage point above the EU average, Spain managed to create almost a million new jobs, almost one-third of what was lost.
Spanish GDP could grow up to 3.3% in 2015
The Corner | June 21, 2015 | Rating agency Moody’s expects Spanish GDP to grow by 2.7% in 2015 and highlights the employment creation in the last quarter of 2014. But the country still “faces important challenges such as a public deficit that might hamper growth in the mid term.”
Spain yields widen ahead of another crucial week for Greece
The Corner | June 15, 2015 | Spain’s yield spread soared as Greece talks have stalemated in recent weeks. The country’s 10-year bond yield rose 12 basis points to 2.37 percent at 11:21 a.m. London time.
Deal to raise Spanish wages for the first time in three years
MADRID | June 10, 2015 | By Fernando G. Urbaneja | Spanish unions and employers’ organisations signed a two-year-agreement this week to raise salaries, the first hike in three years. Both parties had been debating for months while the government, distant yet vigilant, recommended a raise combining purchasing power with productivity.