The Spanish Economy
European Commission: In-depth review for SPAIN 2015 (February 26, 2015)
On the basis of the IDRs, the EC has identified imbalances in BE, DE, IE, ES, HU, NL, RO, SI, FI, SE and UK; and excessive imbalances in BG, FR, HR, IT and PT. Spain: the EC considers that ES is experiencing macroeconomic imbalances, which require decisive policy action and specific monitoring. ES exited the financial assistance programme for the recapitalisation of financial institutions in 2014 and is currently subject to post-programme surveillance and European Semester surveillance. Despite some improvement in the current account rebalancing, risks related to the high levels of private and public sector indebtedness and the highly negative net international investment position continue to deserve close attention in a context of very high unemployment. The need for action so as to reduce the risk of adverse effects on the Spanish economy and, given its size, of negative spillovers to the economic and monetary union, is particularly important.
Quarterly National Accounts Q4-14 (February 26, 2015)
In Q4-14, the Spanish economy grew by 0,7% q/q, this rate is 2 tenths higher than that recorded the Q3-14 (0.5%). Year-on-year growth stands at 2.0%, compared with 1.6% registered in the previous quarter. By temporary aggregation of the four quarters, the GDP volume growth for the whole year 2014 was estimated to be 1.4%.
Deal summary: new €7bn, 1.95%, 15-year benchmark (February 25, 2015 - pdf 253 KB)
The Kingdom of Spain priced on Wednesday the 25th of February a 15-year benchmark bond. The new €7 billion SPGB due July 2030 pays an annual coupon of 1.95% and was priced at a spread of 100bps over mid swaps (a new issue premium of just 2bps to fair value at the time of pricing). More than 460 investors participated in the transaction with a total order book reaching €20.2 billion. Non-domestic investors accounted for almost 73% of the orderbook.
Short term auction (Letras): 24 February 2015 (February 24, 2015 - pdf 84 KB)
3-month Letras: €447m allotted, 5.12 bid-to-cover, 0.001% weighted average rate. 9-month Letras: €2.07bn allotted, 2.96x bid to cover, 0.122% weighted average rate.
- Weekly Economic Bulletin (February 20, 2015)
Long term auction: 19 February 2015 (February 19, 2015 - pdf 85 KB)
Oct-2017: €1.45bn allotted, 3.27 bid to cover, 0.384% weighted average rate. Apr-2025: €2.72bn allotted, 2.02 bid to cover, 1.616% weighted average rate.
Consumer Price Index (CPI). January 2015 (February 13, 2015)
The y/y change of the January CPI index stands -1.3% (-1.0% in December). Core CPI increases two tenths at 0.2% y/y in January. The harmonized consumer price index (HICP) decreased 0.4pp to -1.5% y/y.
SDDS Plus (Special Data Dissemination Standard Plus) (February 13, 2015)
As of today, Spain officially complies with the newest and most demanding standards of the International Monetary Fund (IMF) for the dissemination and publication of economic and financial statistics: SDDS Plus (Special Data Dissemination Standard Plus).
Council of Ministers: Supervision and financial solvency (February 13, 2015 - pdf 87 KB)
The CoM approved a Royal Decree implementing the Law on the Organisation, Supervision and Solvency of Credit Institutions. The text adapts the regulatory framework for credit institutions to the new requirements on integrated supervision issued by the European Central Bank.
Council of Ministers: Collective investment undertakings (February 13, 2015 - pdf 81 KB)
The government approved a Royal Decree modifying the regulations governing collective investment undertakings. The new legislation complements the reform undertaken in November 2014 through Law 22/2014 on venture capital companies and collective investment undertakings and fund managers.
Council of Ministers: Government strengthens independence of audits (February 13, 2015 - pdf 82 KB)
The CoM has approved, for submission to Parliament, the Draft Law on Accounts Audits, which responds to the need to adapt Spanish law to European law. The text strengthens the transparency and supervision of the sector and the aim is to improve the quality of audits to increase the reliability of economic and financial information.
Industrial Production Index (IPI). December 2014 (February 06, 2015)
In December, the m/m change of the Industrial Production Index stood at -0.3% (SA). The y/y change of the IPI stood at -0.9% in SA terms and at 2.1% in the original series. In the year 2014 as whole, the IPI increased by 1.1% (SA), and by 1.4% (original series).
European Commission: European economic forecast - Winter 2015 Spain (February 05, 2015)
Rising growth on the back of domestic demand: Spain’s economic growth is set to pick up as domestic demand benefits from an improving labour market, easier financing conditions, greater confidence and lower oil prices. Net exports, by contrast, are expected to dampen growth, although this effect will gradually diminish this year and next, as Spain’s competitiveness improves. At the same time, the government deficit should continue to narrow. GDP growth is projected to reach 2.3% in 2015 (up from 1.7% in November) and 2.5% in 2016 (up from 2.2% in November).