internal devaluation


Spaniards did rescue Spain

OP ED by Julia Pastor | Brussels welcomed Spain’s economy timid comeback to the path of growth in 4Q13. When some financial publications wonder who saved the country, they quote Draghi’s OMT as well as the internal devaluation followed to PM Mariano Rajoy’s reforms. They do not mention, however, that due to internal devaluation Spaniards have seen their salaries cut by an average of 10%, and 27% of household depends on retired people pensions, who are even assuming mortgage loans their kids can’t pay anymore.

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“Indeed, the worst is over in Spain…but still”

BARCELONA | By Joan Tapia| The crisis and recovery start management in Spain could be clearly improved. As a consequence, the economic confidence index stands at a gloomy 30.8 in December but have increased by 41% regarding 2012’ same month, while political sentiment is even lower at 27.1 and continues falling.

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Internal devaluation in Spain and unemployment

By Luis Arroyo, in Madrid | I give you today a couple of graphics, which measure how the process of internal devaluation is going in that peripheral crown, Spain. First, the industry labour costs (wages, red line) and producer prices. Then, industrial production. Everything in annual variations. As readers can see, the boom years were not quite as buoyant in terms of industrial production. Meanwhile, wages were well above the prices, at 4%, trimming production margins. It is a reflection of the brick-and-morter boom, which revitalised wages and sturdy houses…