Beware the Montoro effect: two charts
In economist Luis Arroyo’s view, the Spanish Treasury would have made two mistakes that hit hard the economy: too high a VAT rate, and too expensive energy bills.
World economy
Euro zone’s current surplus is increasing but curbs can be seen on the horizon
CaixaBank research | The current surplus reaches almost 60 billion euros, close to the peak of 2004. Rising oil prices and the euro’s appreciation might slow up the pace of growth in the current surplus.
Euro zone’s internal devaluation, my eye!
Economist Luis Arroyo rephrases the popular “we all are in this together” slogan: we all at the euro zone are heading towards recession in less than a year.
The United States’ necessary leadership
By CaixaBank analysts, in Barcelona | The United States grows by 2.3% year-on-year, but the weakness in employment and fiscal adjustment force a third round of quantitative easing by the Federal Reserve.
Boosting domestic demand is key to the euro zone recovery
BARCELONA | Europe’s political agenda intensifies, analysts at CaixaBank. But the dynamism of the foreign sector is not enough to offset the fragility in domestic demand.
The euro zone tames government deficit but debt rises
Euro area and European Union government deficit has reached 4.1% and 4.4% of GDP, respectively. Government debt is at 87.3% and 82.5%, according to Eurostat.
Germany’s GDP set to fall in the second half of the year
City of Madrid analysts have checked figures of the German ZEW index and its evolutions regarding actual GDP changes. They expect the engine of this core euro zone economy to go into negative territory during the coming months.
U.S. elections debates: Biden levels playfield for Obama
Vice president Joe Biden’s performance was too aggressive, according to most analysts, but fared better among voters that a mild-mannered president Barack Obama. The second US election debate put pressure back on the Republicans’ team.
Brazil: it’s not for the want of stimuli
Brazil will invest 53.5 billion euros in infrastructures. The effectiveness of these measures, though, depends on their correct and swift implementation, note CaixaBank analysts.
German growth model will turn country into “Europe’s sick man” again, Barclays warns
Barclays analyst A. Vigil alerts of the many weaknesses of Germany’s economy behind its current standing as ‘Europe’s savior’.