Hopeful but viable: Spain’s 2013 Budget
JLM Campuzano, analyst at Citigroup, treads through some of the figures in the Spanish general budget for next year. He finds effort, risk, savings, some uncertainties and a lot of unavoidable pain.
World economy
The current deficit of the European Union continues to improve
The euro area’s current balanced reached a 0.5% surplus of GDP in the second quarter of 2012. The correction in peripheral economies should be taken note of, CaixaBank analysts highlight.
What the Bank of Spain also said but you didn’t hear
Did you know non-resident tourist spending grew by 8.9 percent in July year on year? Analyst at Barclays Spain Alberto Vigil collected today some positive data the Bank of Spain released in its latest bulletin.
Prices in the EU: still stable
Inflation in the euro area remains anchored at 2.4 percent, although differentials between countries are growing. Analysts at CaixaBank warn governments about raising VAT rates to increase income.
China and EU: agree to disagree
The European Commission accuses China of subsidising its production at home and selling at an uncompetitive low price in Europe. But these days, China is heavily investing in the Old Continent, and some euro zone governments like Germany favour a soft approach instead of fines.
Change rapidly nearing Equatorial Guinea
After 44 years, this former Spanish colony feels tired of Teodoro Obiang’s dictatorship. New times will bring much needed updates to the country’s business sector. Spanish companies have an important role to play, says Donato Ndongo-Bidyogo.
Italy’s real GDP faring worse than its neighbours’
Out of the markets’ spotlight, the Italian economy isn’t actually improving. Brussels must balance its ‘whenever in doubt apply a budget-cut’ policy: when GDP deterioration reaches too low a point, that makes urgent structural reforms implausible.
Competitiveness evens out, but unemployment still weighing Europe down
BARCELONA | The job market’s outlook for the coming months is not encouraging, analysts at CaixaBank Research indicate. But imbalances in labour costs across Europe are showing signs of correction. Structural measures could be already working.
Spain breaks 2007 July-August foreign tourist rate record
Latest data on foreign tourist numbers bring some degree of relief to an economically hurting Spain. Levels of visits have this summer approached 2007 figures. Madrid must apply VAT increases with care on the sector.
Indeed, poor rich children
In London and Madrid, NGO Save the Children has given a word of alert: the economic crisis is hitting hard those who are more vulnerable. Medicines and food aren’t as available as they should be to them.