The international organisation maintained its forecasts for Spanish GDP growth (3.1% in 2015) but cut its global growth estimate to 3.1%, the worst performance since the start of the financial crisis six years ago.
Spain’s public deficit ranks as the highest one in the eurozone, with the exception of Cyprus. Up to now, a set of exceptional circumstances has allowed for a stance of benign neglect at visible cost. But dangers loom ahead if fiscal rectitude is not firmly enforced.
MADRID | May 18, 2015 | By Francisco López | The Spanish economy does not shake off the Brussels’ yoke even when is leading the growth of the eurozone. The European Commission is still placing us in the group of the European countries with the most serious economic imbalances.
MADRID | April 28, 2015 | By Carlos Díaz Güell | The Spanish economy is certainly turning the corner as evidenced by its growth rate, possibly exceeding 3% this year, and employment data, although both indicators are cooled down by analysts who believe growth in the medium and long term may be hampered by too many mortgages.
MADRID | The Corner | Spanish exports continue to grow, posting an annual rise of 2.5% in 2014, according to figures released on Wednesday, exceeding €240 billion for the first time. The country’s trade deficit currently stands at €24.5 billion, with imports rising by 8.3% year-on-year, leading to a 53.4% rise in the commercial deficit.
LONDON | By Kieran Davies at Barclays | Australia’s largest mining boom on record is in its final stage, with mining investment starting to fall at a faster rate and mining exports start to lift rapidly as supply comes on stream. These trends have seen the current account deficit narrow to 1.4% of GDP, the smallest shortfall since 1980, although we expect the current account to remain in deficit as a massive increase in the supply of commodities over the next few years pushes export prices lower.
BARCELONA | Joan Tapia| That the Spanish economy grew by 0.4% quarterly in the 1Q14, and by 0.6% yearly is a real green shoot. After several years of recession, GDP is to grow moderately, around 1% in year 2014. However, employment continued falling by 184,000 people, at an annual pace of 0.5%. A slap in the face for those who told the recovery was more intense than expected.
BERLIN | By Alberto Lozano | It’s not all about the deficit. If the eurozone wants to achieve the goal of sustainable growth, Germany also needs to shorten its chronic current account surplus, the world’s largest, which has led the country to accumulate capitals abroad amounting 100% of its GDP. Although this means dismissing one its economic miracle recipes -wage moderation-, Merkel will increase public workers’ salaries by 3% this year, +3X inflation.
MADRID | By Jaime Santisteban | Market makers woke up with a torrent of data explaining how first quarter played out: Spanish public deficit, Eurozone’s activity indicators, and many more.
MADRID | The Corner Team | Exports are pumping fresh air into the Spanish economy. The recession-hit country’s trade deficit plunged by a further 53.5 per cent in July, officials said on Friday. The government is banking on foreign trade to be an engine of the recovery.