spanish economy


If Spain will lead the Eurozone in 2015 and 2016, what happened to the Spailout?

MADRID | The Corner | In spite of, or maybe, thanks to the so-called Spailout (2012), Spain is today one of Europe’s driving forces. The International Monetary Fund’s estimates on global economy point to the country as the outperformer of the Eurozone for the first time in six years. Its GDP would grow by 2% this year and 1.8% in 2016.

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Spain’s economic confidence at pre-crisis levels

MADRID | The Corner | Economic confidence in Spain reached its highest level in December since June 2007 (105.6 points from 104.2 the previous month), according to the European Commission. The figures show an improvement in trust from consumers, the services sector and retailers.

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For the Spanish economy 2015 may be a mini boom

BARCELONA | By Joan Tapia | We don’t know what 2016 holds for us, but we do know that 2015 will be economically positive. From an economic point of view, 2015 may even be a mini-boom. Apart from the GDP, which has been growing for five quarters, the tax collection is doing relatively well. The central government will stop containing the public spending, even for the Spanish regions, because 2015 is an electoral year. The fiscal reform will be a sort of increase in salary that will boost consumption.

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Spanish CPI falls by 7 tenths due to drop in oil prices

MADRID | The Corner | It was expected that the fall in the oil prices would have an impact on the Spanish CPI, and that is what has happened. The CPI dropped by six tenths in December with respect to the previous month, while it reduced its interannual rate by seven tenths to -1.1%. This fall is the result almost exclusively of the decline of the oil price, whose fluctuations represent more than 50% of the variability of the Spanish inflation.

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Recovery and electoral expectations

MADRID | By Fernando G. Urbaneja | Spanish PM Mariano Rajoy faces 2015 with electoral commitments and weak prospects. The goal of the Popular Party (PP) is to reach enough votes so as to maintain a large part of its power in the Spanish regions and city councils where it has the majority. The final goal is achieving the re-election in the central government by means of achieving the recovery.

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Spanish economy is improving despite a growing political malaise

BARCELONA | By Joan Tapia | Last month, I warned about the serious political problem in Spain, which was (and is) focused on the Catalonian crisis and the rise of the new political party Podemos. Both could disrupt the political system and kill off imperfect bipartisanship. Meanwhile, the economy was starting to show some signs of improvement. In November, the perception that the economy is improving while politics are worsening has increased and multiplied. It is difficult to argue with the fact that the economy is going better than last year.

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“Temporary factors” force analysts to revise Spanish GDP forecasts upwards

MADRID | Francisco López | The oil collapse, depreciation of the euro, low interest rates and the reduction of personal income tax are “temporary factors” that will allow the Spanish economy to grow faster than expected, according most analysts. Funcas forecasts that Spanish GDP will grow by 2.4% in 2015, 0.2 higher than their previous estimates.

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Companies’ destruction in Spain approaching end of the tunnel

MADRID | The Corner | Almost 8,000 companies were created in Spain in October, according to official figures, around 3% more y-o-y. The rate of businesses destruction went down by -12.2%, showing the economy’s slight improvement. However, unemployment still sits painfully at  23.7% and entrepreneurs still complain about red tape and other restrictions.

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Spanish economic confidence on the rise

MADRID | The Corner | The indicator of economic confidence of Spain stood at 104.2 points, a sharp rise of nine tenths in November, and its highest level since August 2007, Brussels reported. The upturn in confidence in the Southern EZ economy is explained by the observed improvement in the manufacturing sector, services and retail, while consumer confidence and construction deteriorated compared to October.