20 jul 2016
Economy Outlook

Spanish economy outlook july 2016

The Economic and European Affairs Department of CEOE analyzes the recent economic facts of the Spanish economy in this new report.

Economic outlook - July 2016
Economic outlook - July 2016 — ©Dreamstime

After the victory for Brexit, volatility in financial markets increased and the British pound depreciated against major currencies. Two rating agencies, Standard and Poor ́s and Fitch, lowered the UK’s credit rating, and one of them lowered the EU’s rating. The IMF revised economic growth downwards for both, the British economy and the Eurozone.

The Spanish economy again grew at a high rate in the second quarter, with the quarterly rate being set at between 0.7% and 0.8%, according to several institutions.

June saw a rebound in the number of people registered with the Social Security, although in the second quarter as a whole employment creation slowed down.

Inflation slowed its pace of decline due to a lower decrease in energy products, while core inflation decelerated. CPI is expected to post positive rates in the last few months, although the average for the year will be slightly negative.

After the assessments by the European Commission on the budgetary situation in Spain, it has concluded that Spain did not take efficient action to meet the deficit commitments for 2014 and 2015. The ECOFIN ratified this assessment and has initiated an excessive deficit procedure that may trigger sanctions for Spain.

 

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