LONDON | By Barclays analysts | Several data releases over the past few days confirm that the Spanish economy has left behind a very long recession. The data confirm our view of a very gradual recovery in economic activity starting in Q3 2013 (seeEuropean Economics Quarterly, October 2013, for details). The economy grew at +0.1% q/q in Q3 13 after nine consecutive quarters of negative prints.
THE CORNER TEAM | For the first time since 2009, when the country lost the top credit rating by S&P, Spain’s outlook has been upgraded. Fitch affirmed its ‘BBB’ investment-grade rating and gave it a “stable” prospect thanks to progress in reforms and improved export performance.
WASHINGTON | The Corner Team | Thanks to the implemented reforms between June 2012 and June 2013, Spain has become more business-friendly, according to a report by the International Finance Corporation (IFC) and the World Bank. Among others, the country eliminated the requirement to obtain a municipal license before starting operations.
MADRID | By Julia Pastor | Banco Santander’s chairman Emilio Botín pointed it out a couple of weeks ago: “Everyone is interested in Spain to invest”. Meanwhile, Bill Gates bought 6% of the FCC. As if light had come to the Spanish economy, €20bn of foreign investment has flooded the country in the first eight months of 2013, doubling last year’s figures.
MADRID | By The Corner Team | The Spanish economy is enjoying some hopeful news at last. After 38 months in the red, retail sales in September rose. Foreign direct investment reached 20 billion from January to August, a symptom of consumer’s confidence increasing. And yields dropped to the lowest since May before the government pays interest and bond maturities of about 21 billion euros.
MADRID | By Tania Suárez | After 38 months of consecutive losses, the Spanish Retail Trade Index increased by 2.2% on September as compared with September 2012. There is increasing evidence of a slight recovery in consumption, which opens the door of hope to merchants and tradesmen.
MADRID | By JP Marin Arrese | The gloomy angst triggered by the most prolonged recession ever witnessed by the Spanish economy in modern times is over. After nine successive quarters of GDP decline, the Central Bank gauges national production might have increased at a meagre 0.1% in the last quarter. This announcement has come as a bolstering relief for government. Ministers openly claim that growth is firmly back on track, the reform plans implemented last year being granted full credit in propelling the economy out of trouble.
MADRID | Spain is one of the European countries with the highest black economy and tax loss revenue since the current crisis began. This was revealed by a survey conducted by two Spanish tax inspectors, who estimate the undeclared economy was of 28.7% of GDP this year. To prevent loss of tax revenue they praise for limiting the 500 and 200 euro-banknotes and promoting incentives on electronic payments avoiding European regulations that unbalance the system.
MADRID | By The Corner Team | Spanish judges have ordered the release of convicted ETA militant Inés del Río, serving a 30-year sentence for bomb attacks in the 1980s, after the European Court of Human Rights ruled against her detention. Dozens of prisoners from the terrorist group could now be eligible for release.
MADRID | By The Corner Team | Has Spain joined the club of spied countries by the American National Security Agency, like Germany and France? The Spanish intelligence believes communications via SMS, e-mails and phone calls have been monitored, although Spanish minister José Manuel García-Margallo denied it on Tuesday.