In Q4 of 2014, wage costs in Spain increased by 0.4% compared to a rise of 1.1% across the euro zone. It is expected that the wage differential between Spain and the euro zone will continue in the coming quarters, allowing for continued improvement in competitiveness in the Spanish economy.
Exports have been somewhat weaker at the beginning of 2015. In January, exports shrank by 2.9%, interrupting –we expect temporarily- the turnaround in performance which was observed in late 2014. However, the decline in imports of -3.2% has served to improve the balance of trade in the first month of the year.