The weakness of Spain’s exports industry: we need more high-technology investment
Of its total exports, Spain only sells 5% of high-technology products overseas, or 1.65% of GDP. The country needs to boost investment in high-tech goods and services.
wages
Why Is Spain’s Recovery Not Reaching Wage Earners?
International organisations and the leading research departments are revising their growth forecasts upwards for the Spanish economy for this year and 2018. But at the same time, they note that Spain’s recovery is not reaching most wage earners.
Spanish Wage Trends And Productivity Are Travel Companions
From its pre-crisis maximum level, the real value of salaries has fallen 43 billion euros, mainly in the construction sector. On the other hand, in the services sector they have risen by some 5 billion euros. Since the start of the economic recovery, wages have increased below productivity rates. This has been particularly noticeable in the manufacturing sector.
Vigilant Of Second Round Effects
BoAML | We have remained quite bearish on Euro area inflation for the past few years, particularly compared with ECB forecasts (but also consensus), and have highlighted the many downside risks to the inflation outlook.
Will rising labour costs damage Spain’s competitiveness?
F. Barciela/ F. G. Ljubetic | Labour costs in Spain stagnated during the crisis, but the idea that they eventually have to rise again has quite a few supporteres, including many businessmen. It would even be a postive driver for consumption and the economy general.
Spain Is Hampered By Its Deficit
Ofelia Marín-Lozano | Spain’s public deficit stood at 5.18% of GDP, missing the target set by Brussels (4.2%) by one percentage point. So the deficit should not be higher than nominal GDP growth, which can be estimated at around 3% in the long term.
Spain employment 2015: More temporary and part-time workers, lower wages
MADRID | July 5, 2014 | By Fernando González Urbaneja | It’s been one of the costs of the crisis: an internal wage devaluation. Over the last year and half of the economic recovery, with the country’ GDP growing more than one percentage point above the EU average, Spain managed to create almost a million new jobs, almost one-third of what was lost.
Deal to raise Spanish wages for the first time in three years
MADRID | June 10, 2015 | By Fernando G. Urbaneja | Spanish unions and employers’ organisations signed a two-year-agreement this week to raise salaries, the first hike in three years. Both parties had been debating for months while the government, distant yet vigilant, recommended a raise combining purchasing power with productivity.
Gains in competitiveness to continue in Spanish economy
The Corner | April 2, 2015 | La Caixa Research | Competitiveness gains in the Spanish economy are set to persist as wage increases continue to lag behind other euro zone countries.
“Spain would be one of the top destinations of a European investment agenda”
FRANKFURT | By Lidia Conde | Martin Gornig is deputy head of department of Firms and Markets at the prestigious German Institute for Economic Research (DIW) in Berlin. The Institute conducts a working group that advises the Minister of Economy Sigmar Gabriel with the idea of increasing investments in Germany. Gornig and his team released a report last summer on the possibility of stimulating growth in Europe without changing the Stability Pact. The proposal of DIW is to immediately mobilize the necessary investments “to boost growth in countries in crisis and avoid a new recession in the eurozone.” As France and Italy are demanding, the Institute bets on growth but warns that it should not be at the expense of a debt increase