The Spanish Economy
Labour market: Economically Active Population Survey (EAPS) Q2-16 (July 28, 2016)
In Q2-16, employment increases by 271,400 persons. In the last 12 months, employment increases by 434,400 persons, the y/y change in employment was +2.43%. The number of unemployed persons decreases by 216,700 in Q2-16. In the last 12 months, unemployment decreases by 574,300 persons, the y/y change in unemployment was -11.15%.
Retail Trade Index (RTI). June 2016 (July 27, 2016)
The monthly change of the RTI stands at 1.7% (SA) vs -0.9% m/m the previous month. The y/y change of the index stands at 5.6% (SA) and at 6.0% (original series).
European Commission: Recommendation for a Council Decision giving notice to Spain to take measures in order to remedy the excessive deficit (July 27, 2016)
Following the Council decision of 12 July 2016 that Spain did not take effective action to correct his excessive deficit, the EC recommends a new fiscal adjustment path. Taking account of the economic and fiscal situation, the EC recommends that Spain puts an end to its excessive deficit by 2018, at the latest. Spain shall reduce the general government deficit to 4.6% of GDP in 2016, to 3.1% of GDP in 2017 and to 2.2% of GDP in 2018. The deadline for taking effective action and reporting on it will be 15 October 2016.
European Commission: Recommendation for a Council Decision imposing a fine on Spain (July 27, 2016)
According to Article 6 of Regulation 1173/2011 as part of the so-called six-pack, the EC is legally required to propose a fine of 0.2% of GDP of the preceding year. However, this amount can be reduced or cancelled following a reasoned request from the Member State concerned. Spain has submitted a reasoned request to cancel the fine, while reaffirming his commitment to comply with the rules of the Stability and Growth Pact. In consideration of this, and in acknowledgment of the reform efforts of Spain in recent years following the financial assistance programme, the EC proposed that the Council cancels the fine.
- Weekly Economic Bulletin (July 22, 2016 - pdf 612 KB)
Long term auction: 21 July 2016 (July 21, 2016 - pdf 86 KB)
Three references were auctioned with a target range of €2.5 to €3.5bn. Jan-2019: €1.72bn allotted, 1.74 bid to cover, -0.072% weighted average rate. Jul-2021: €0.91bn allotted, 3.34 bid to cover, 0.227% weighted average rate. Oct-2046: €0.46bn allotted, 2.25 bid to cover, 2.275% weighted average rate. The gross issuance of medium- and long-term bonds stands at €84.3bn (70.0% of the projected figure for the year).
Short term auction (Letras): 19 July 2016 (July 19, 2016 - pdf 81 KB)
Two references were auctioned with a target range of €2.5 to €3.5bn: 3-month Letras: €0.58bn allotted, 4.51 bid-to-cover, -0.327% weighted average rate. 9-month Letras: €2.47bn allotted, 2.19 bid-to-cover, -0.209% weighted average rate.
Deal Summary: new €6bn, 1.300%, 10-year benchmark (July 19, 2016 - pdf 238 KB)
The Kingdom of Spain priced a new 10-year benchmark. This is the fourth syndicated bond for 2016. The new €6bn SPGB due 31 October 2026 pays a 1.300% coupon and was priced at a spread of 95bps over mid swaps (reoffer yield of 1.314%). More than 420 investors took part to the transaction with an orderbook that reached €28bn at the final spread.
Reasoned Request to EC in response to Council Decision of 12 July 2016 (July 13, 2016)
Having regard to the decision of the Council of 12 of July 2016, establishing that no effective action has been taken by Spain in response to the Council recommendation of 21 June 2013, Hereby, and by means of this document, addresses a reasoned request to the European Commission that the fine referred to in Article 6 of Regulation (EU) No 1173/2011 is cancelled.
Consumer Price Index (CPI). June 2016 (July 13, 2016)
The y/y change of the CPI index stands at -0.8%, two tenths higher than that registered the previous month. Core CPI stands at 0.6%, one tenth lower than that registered in May. The harmonized consumer price index (HICP) stands at -0.9% y/y, two tenths higher than that registered the previous month.
Council EU: EDP, Council Decision on no effective action by Spain (July 12, 2016)
The Council concluded that Spain 's response to its June 2013 recommendation has been insufficient. Spain didn't reach the intermediate target set for its headline deficit in 2015 and is not forecast to correct its deficit by 2016 as required. Its fiscal effort falls significantly short of what was recommended by the Council, and it even relaxed its fiscal stance in 2015.
OECD Employment Outlook 2016 - Spain (July 07, 2016)
Labour market conditions continue to improve and the OECD average employment rate is projected to return to its pre-crisis level in 2017, nearly ten years after the global financial crisis erupted.
Industrial Production Index (IPI). May 2016 (July 06, 2016)
The m/m change of the Industrial Production Index stood at -0.5% (SA). The y/y change of the IPI stood at 1.0% in SA terms and at -4.0% in the original series.
(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)