It’s straight out of the textbook that low inflation – and above all deflation – has negative effects on economic growth that we all know about. That’s the main reason why ECB President Mario Draghi implemented an ambitious set of monetary expansion measures in March, with the aim of boosting prices to a level more suitable for economic growth, namely 2%.
Fernando Barciela | The IMF and other international organisations including the OECD are very worried these days that the global economy will only grow 3.3% or less this year. On the other hand, they are very happy about Spain achieving the same level. Why? What makes the diference?
MADRID | By The Corner Team | Spain’s GDP expanded 0.3 percent in the quarter ended Dec. 31 from the previous three months. For the first time since 2011, the euro region’s fourth largest economy’s growth increased for a second straight quarter, according to official estimates. Market makers are underlying their faith on this new-found economic momentum, and their trust comes as fresh air for the government, who predicted a faster rate recoverty than initially expected. Still, job creation needs to pick up from a depressing 26%.
MADRID | By Jaime Santisteban at The Corner TV | Economic growth in Spain is still weak and there is a risk the EU deficit goal could be overshot as both the public debt and the unemployment rate are too high. We discuss the current outlook and necessary reforms with Chairman of The Corner and former head of the Madrid Press Association Fernando G. Urbaneja.