MADRID | May 25, 2015 | By Fernando G. Urbaneja | The conservative Popular Party has its worst election in two decades, losing a big chunk of power in cities and regions on Sunday. Corruption scandals and high unemployment resulting from the economic crisis severely punished traditional parties, which now need to form coalitions with emerging groups Ciudadanos and Podemos.
MADRID | May 21, 2015 | By AFI | The Spanish Treasury issued € 110 billion of debt in gross figures, representing 46% of the total for this year, not so much through cost reduction but via the extension of maturities. In 2015 more than 60% of issuances were 10-year-bonds, while in 2012, at the worst moment of the debt crisis, these maturities only represented 8% of total issuances.
The Corner | May 18, 2015 | Spain’s economy minister Luis de Guindos said the country’s economic growth is likely to be stronger than expected: 3.5% in the first half of the year and more “balanced” thanks to a lower deficit, lower private borrowing and improved external competitiveness and exports.
The Corner | May 8, 2015 | German automaker Volkswagen announced its intentions to invest €4.2 billion in its Martorell and Navarra plants in Spain between 2015 and 2019. The amount almost equals what all car manufacturers have invested in the past three years. The VW group employs 22,000 people in Spain through its 12 brands.
MADRID | May 8, 2015 | By Félix Lores Juberías and Ignacio San Martín at BBVA Reasearch | Housing sales growth moderated in February while the mortgage market regains dynamism. On the other hand, the upturn in construction activity was mirrored in the land market, with an increase in transaction numbers and a mild rise in the price of urban plots.
MADRID | May 7, 2015 | By Luis Arroyo | Credit lending to the private sector (households and companies) continued to fall in March, according to the Bank of Spain. So as a matter of fact there is more lending activity in the country, yet the money is going to the public sector.
The Corner | May 4, 2015 | For the past 17 months, operating in the Spanish manufacturing sector has been easier (more output and new orders were registered), thanks to an increasing client demand, according to the last PMI data released by Markit, although the firm’s indicator posted 54.2 in April, down fractionally from the reading of 54.3 in March.
MADRID | April 25, 2015 | By Ofelia Marín-Lozano | The Euro Stoxx 50 banking index traded at 450 points in 2007. It fell to 70 during the crisis and in the last two years has recovered up to 160 points. In parallel, the profit of large listed Spanish banks fell between 2007 and 2012 to levels around a quarter of the previous highs. Since then it has been recovering, although at the end of 2014 it still was at around 50% of 2007 levels.
The Corner | April 23, 2015 | The number of unemployed Spaniards decreased in the first quarter of 2015 by 13,100 people, and reached the figure of 5,444,600, according to the official Employment Active Population survey released on Thursday (23.78% of the active population). “The employment survey seems to be the only one of which the government is not afraid,” famous radio host Carlos Alsina ironized, referring to Mr Rajoy’s cabinet struggle to contain the fallout from a tax investigation against former senior leader of the party and IMF head Rodrigo Rato.
The Corner | April 18, 2015 | The IMF raised growth expectations for all the major economies in the Eurozone – especially Spain to 2.5% in 2015 and 2% in 2016- and for Japan. The new figures, the sixth improved forecast in a row– are more aligned with Madrid expectations (2%, although the Minister of Economy even forecasts a 3% growth). Low oil prices, the euro depreciation and the ECB’s monthly liquidity shots are the three aces of the Spanish government, who is hoping to retain the power in the next general election despite the popularity of new parties.