Archives March 2015

Spain 2015: Growing Economy

Spain is a country that has the wind. It's the CEE countries that have grown since the beginning of the year, and that measures have to go forward in its economic growth, although still not done very tangible for social masses.

Forecasts European countries (Photo: )

But if it is true that there is a growth forecast for this year to 2.5% (3% predicted by the Savings Fund), and all that exports have gone very well, and domestic consumption is pulling in excess. Besides business investment continues to advance.

Real estate and construction are already growing at 2% and the sectors that are creating jobs.

There are several reasons that are causing the output of this crisis:

a. The depreciation of the euro against the dollar, which makes imports and above the price of imported energy (mainly oil is cheaper).

b. Business profits.

c. Government tax reform, which will be gradually noticing more. Today is starting to see results, although more reforms.

d. That credit begins to flow, it will be the trigger takeoff of Spanish society, traditionally used to grow borrowing. Liquidity is essential for Spain to follow the upward trend.

e. The ECB's policy of injecting million to the Bank, to avoid deflation (falling prices for a long period), the cash will be managed by the Spanish banks which will enter 60,000 million euros, will be changed to buy government debt. That must be cash available to buy securities or to give credit to businesses and society.