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Spanish economy 15th May 2012

Deterioration in Spanish real economy softer than forecast

MADRID | BBVA Research’s latest estimates confirmed the recession in Spain, pointing to a GDP contraction of 1.3% in 2012. However, economic indicators are revealing a less dramatic than estimated deterioration in the real economy. The data presented in its ‘Spain Economic Outlook’ report show that the measures adopted lend credibility to the ability to meet current fiscal deficit targets. BBVA’s economic research department flagged the positive effect of the programme set…

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Spanish economy 15th May 2012

Tuesday’s chart: real estate asset coverage in Spain’s banks

Performing real estate assets in Spanish banks must now be provisioned at 30 percent of its book value, which will raise the average coverage ratio for all real estate assets to 45 percent. Then, troubled and toxic real estate assets will be transferred to an asset management company (sociedad de gestión de Activos) and the rest of the portfolio will be independently audited. The picture of the situation within the banking system in…

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Spanish economy 14th May 2012

How could you say Spain is insolvent?

MADRID | The injection of public money and nationalisation of Bankia ends a compelling need with a solution, earlier discarded, that in the US or the UK has been long ago adopted but neither the Germans or the French want to face, in spite of many of their banks being as weak as some the Spanish entities may be. François Hollande’s arrival to the presidency of France is also good news:…

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Spanish economy 9th May 2012

BANKIA rescue does lift uncertainties, for the moment being

MADRID | Rescuing BANKIA will contribute to cut short doubts on short-term Spanish banking solvency. It was no secret that BANKIA was thrown in deep waters by the demanding government requirement to uplift real estate portfolio, having the dubious merit to top the list of entities laden with bad loans. Its intention to mend this state and play on its own gathered widespread disbelief, as big potential partners turned their backs…

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Spanish economy 4th May 2012

Bien! Unemployment numbers in Spain reduced by 6,632 people

MADRID | The number of unemployment benefit claimants in Spain in April fell by 6,632, bringing the total down to 4,744,235 people according to data released Friday by the ministry of Employment and National Insurance. Although this is the first decline in eight months, analysts pointed out that the little improvement in unemployment figures was mainly due to temporary hiring during Easter and was lower than expected. On average, experts polled…

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Spanish economy 4th May 2012

Slim talk about growth in Euroland

MADRID | Following German Chancellor Angela Merkel’s instructions, those supposedly at command in Euroland zealously repeat that growth and austerity are not in contradiction. Beware about such a slim talk. Their underlying message is that fiscal compact must be preserved at all costs, growth delivery amounting to a merely cosmetic make-up. Eurocrats are working out ways to sell through financial engineering the same money under a more “à la mode” disguise….

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Markets, Spanish economy 3rd May 2012

Bolsas y Mercados’ equity trading up in April, but drop in corporate debt volume

MADRID | Bolsas y Mercados Españoles BME, the operator of all stock markets and financial systems in Spain, said Thursday that equity trading volume on the Spanish stock exchange in April had reached €65.75 billion. This is an increase of 7.25% from the previous month but 19% down on the same period in 2011. The trading volume for the first four months totaled €242.70 billion, down 26% from the same period…

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Spanish economy 1st May 2012

Almost all Spaniards are now poorer

By Carlos Díaz Guell, in Madrid | In Spain, households’ financial assets fell by 3.5% in 2011 due to a downturn in acquisition activity and especially market declines recorded in the third quarter of last year after the deterioration of the sovereign crisis. This is compounded by the collapse of housing prices, which caused housing sector wealth to fall by 6.6% dragging total net wealth down 51 percentage points of GDP. In 2011 it also was reported a change in the composition of household savings with a fall not seen…

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Spanish economy 1st May 2012

Sweeping U-turns undermine Madrid’s credibility

MADRID | No one expects incoming governments to keep promises entered while campaigning to cajole voters. But Rajoy’s performance does merit a place in the Guinness record book. Didn’t he adamantly bind himself never to facilitate lay-offs? Didn’t he commit himself never to increase taxes? People can understand he may break pledges when confronted with a dismal economic scenario. But they have good reasons to feel frustrated at the hectic way…

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Spanish economy 30th April 2012

Spain contracts but recovers faster than any other euro country

MADRID | After the national office for statistics in Spain confirmed everyone’s suspicions about the country returning to recession, with a -0.3% economic contraction versus expectations of -0.4% , a note from BBVA research team on Spain’s strengths could come handy as a reminder that the #spanic would be still avoidable and this Espan-hole could be safely closed. BBVA analysts explained in its monthly report aptly headlined ‘Leaving stereotypes behind‘ that…