The Spanish Economy
Quarterly National Accounts Q1-16 (May 26, 2016)
In Q1-16, the Spanish economy registered a quarterly growth of 0.8%. This rate is the same as the one recorded in Q4-15. Year-on-year growth stands at 3.4% vs 3.5% registered in the previous quarter.
- Weekly Economic Bulletin (May 20, 2016 - pdf 618 KB)
Long term auction: 19 May 2016 (May 19, 2016 - pdf 93 KB)
Three references were auctioned with a target range of €2 to €3bn. Jan-2019: €1.41bn allotted, 2.75 bid to cover, 0.012% weighted average rate. Jul-2024: €0.56bn allotted, 4.35 bid to cover, 1.157% weighted average rate. Jul-2030: €0.48bn allotted, 3.32 bid to cover, 2.048% weighted average rate. The gross issuance of medium- and long-term bonds stands at €56.9bn (47.3% of the projected figure for the year).
European Commission: proposal for Country-Specific Recommendations 2016 (May 18, 2016)
The EC has issued four country-specific recommendations (CSR) to Spain to help it improve its economic performance: (1) Ensure a durable correction of the excessive deficit by 2017, by taking the necessary structural measures and by using all windfall gains for deficit and debt reduction...; (2) Take further measures to improve labour market integration, by focusing on individualised support and strengthening the effectiveness of training measures...; (3) Take further measures to improve the labour market relevance of tertiary education...; and (4) Accelerate the implementation of the law on market unity at regional level... EU ministers are expected to discuss the country-specific recommendations before EU Heads of State and Government are due to endorse them. It is then up to Member States to implement the CSRs by addressing them through their national economic and budgetary policies in 2016-2017.
Short term auction (Letras): 17 May 2016 (May 17, 2016 - pdf 84 KB)
Two references were auctioned with a target range of €1.5 to €2.5bn: 3-month Letras: €0.41bn allotted, 5.26 bid-to-cover, -0.394% weighted average rate. 9-month Letras: €1.56bn allotted, 3.66 bid-to-cover, -0.199% weighted average rate.
Consumer Price Index (CPI). April 2016 (May 13, 2016)
The y/y change of the CPI index stands at -1.1%, three tenths lower than that registered the previous month. Core CPI decreases four tenths up to 0.7%. The harmonized consumer price index (HICP) stands at -1.2% y/y, two tenths lower than that registered in March.
Deal Summary: new €3bn, 3.45%, 50-year benchmark (May 11, 2016 - pdf 264 KB)
The Kingdom of Spain priced a new 50-year benchmark. This is the third syndicated bond for 2016. The new €3bn SPGB due 30July 2066 pays a 3.45% coupon and was priced at a spread of 250bps over mid swaps (reoffer yield of 3.493%). More than 300 investors took part to the transaction with an orderbook close to €10bn at the final spread.
Industrial Production Index (IPI). March 2016 (May 06, 2016)
In March, the m/m change of the Industrial Production Index stood at 1.2% (SA). The y/y change of the IPI stood at 2.8% in SA terms and at -1.7% in the original series.
Markit Services PMI. April 2016 (May 04, 2016)
The headline SA Business Activity Index posted 55.1 in April, down only fractionally from 55.3 in March and continuing to signal a marked rise in services output. Activity has now increased on a monthly basis throughout the past two-and-a-half years.
European Commission: European economic forecast - Spring 2016 Spain (May 03, 2016)
Economic growth is set to continue easing but to remain robust, underpinned by sustained job creation and declining unemployment, improved financing conditions and low oil prices. Inflation is expected to remain negative in the short term due to falling energy prices. The general government deficit is expected to narrow, mainly thanks to the economic recovery. Accordingly, Spain’s economy is forecast to grow by 2.6% (2.8% in February) and 2.5% (2.5% in february) in 2016 and 2017, respectively.
Markit Manufacturing PMI. April 2016 (May 02, 2016)
The SA PMI index posted 53.5 in April, up from 53.4 in March and signalling a further solid improvement in the health of the sector. Business conditions have now improved in each of the past 29 months.
(May 2016 - pdf 994 KB)
Stability Programme 2016-2019 (Summary presentation) ES
(April 2016 - pdf 234 KB)
National Reform Programme 2016 Executive Summary
(April 2016 - pdf 190 KB)