Spain’s competitiveness increased in the third quarter compared to other eurozone and OECD countries, with consumer prices indices as a reference, according to the Competitive Trend Index compiled by the Ministry of Economy, Industry and Competitiveness.
Compared with the OECD countries, Spain improved its competitiveness by 0.8% after two quarters during which it deteriorated or was stable. With regard to the rest of the eurozone, the Index has improved for three consecutive quarters, and in this case with an increase of 0.7%.
On the other hand, in the third quarter, there was a loss of competitiveness-price with the EU as a whole, for the first time in the last eleven quarters, with a drop of 1%. This was due to the appreciation of the euro against the rest of the EU countries. This decline was moderated by the decrease in prices in Spain compared with the average increase in prices in those countries.
In relation to the BRIC countries, the Competitive Trend Index calculated with prices registered a loss of competitiveness via exchange rates, with a decline of 0.8% from a year earlier. It now has been deteroriating for three consecutive quarters. The euro’s appreciation against the currencies in these countries was offset, in part, by the the drop in the relative prices index.