The year-on-year growth of Spanish exports between January and June (+23.3%) was higher than that of Germany (+16.7%), France (+17.4%) and the United Kingdom (+9.4%), as well as that of the EU-27 (+18.2%).
Spain can’t imitate Germany in a context in which Europe is a closed zone where countries export to each other. And Spain is unlikely to become another Germany because the Spanish production model is still based on low productivity.
The trend in the variables observed indicates that the recovery of the Spanish economy continued during the first half of 2016. With nearly 80% of the information available for 2Q16, the MICABBVA model estimates that quarterly GDP growth (QoQ) will have completed one year at around 0.8%. If confirmed, this stabilisation in the pace of expansion would give an upward bias to the growth envisaged in BBVA-Research’s baseline scenario for 2016 (2.7%).
BERLIN | By Alberto Lozano | German IFO index has shown today that business climate continues to worsen. The German Business Sentiment registered its fourth consecutive decline after falling 1.7 points from the previous month to 106.3 points, representing its worst reading since July 2013 decline. “The German economy continues to lose steam”, indicates Hans-Werner Sinn, president of the IFO Institute. “The outlook for the coming months also deteriorated noticeably.”
MADRID | By Carlos Díaz Güell | Spain’s GDP growth in 1Q14 (0.4% on a quarterly basis and 0.5% year on year) was backed by an increase in the national demand (1%), which was boosted by an atypical upturn of the public consumption. Meanwhile, the external sector moved away from the upward trend that had been following in the last few years which was affecting growth.
MADRID | By Carlos Díaz Guell | A factor to bear in mind is that in the most successful exporting sectors, foreign investment punches high and has become vital to the economy and the Spain brand.
MADRID | By Julia Pastor | Unlike Spain, where the external sector is supporting the economy, Italian exports fell by 1.9% in 1Q13, its worst register from 1Q09. The country’s GDP dropped by 0.6%, and April’s industrial production by 0.3%.
China’s economic miracle was possible thanks to three decades of cheap manufacturing and exports. Thousands of workers left their villages to become the cheap labour force of China’s southern cities. Now this is a thing of the past.
GUIPÚZCOA | Australia’s minister for Transport Gladys Berejiklian announced CAF has been selected for the $20 million contract for the supply of new vehicles to run on the Inner West Light Rail Extension. The project is due to be completed in 2014. The new light rail vehicles will operate on the Inner West Extension and integrate with the rest of the light rail network. “The Spanish company Construcciones y Auxiliar…
The heaviest economies of the euro zone’s periphery, Italy and Spain, have behaved in a more competitive manner than most sceptics about the laggards of the common currency union would have it. Companies from both Mediterranean countries have increased their presence in markets outside their natural environment, partly forced by a falling domestic demand but due to the strength of production structures and new-found adaptability, too. Here on The Corner,…