EUROPE PRESS
The Minister of Economy and Competitiveness, Luis de Guindos, has advanced the growth of Gross Domestic Product (GDP) will be close to 1.5% this year and 2% next year despite the economic slowdown that has occurred in the euro zone year and Russian ban on imports of perishable products, factors that, in their view, do not compromise the Spanish growth.
“ Current forecasts are 1.2% and 1.8% . Obviously if there is an improvement we approach the 1.5% and 2%, “said the minister in an interview with Europa Press, after stating that the leading indicators of growth and jobs are better than expected in the macroeconomic framework April.
minister did not specify the new figures to be released in September, but said that the improvement will be noticed especially in the magnitudes of employment, since the government expects creation of jobs will double in 2015.
The government said Spain would create 600,000 jobs
This past April, the government said Spain would create 600,000 jobs in terms of the Labour Force Survey for 2014 and 2015, while the number of unemployed will decrease by 800,000, figures that are expected to be high in September.
According Guindos, improving variables may occur because, even though the Spanish economy is closely linked to that of Europe, Spain now has a fundamentals “very solid” q allow you to ue to the slowdown in the euro zone and to avoid what happened in late 2010, when the small recovery “sold out” by another economic slowdown.
“Of course we are sensitive to what happens in the rest Europe, but what has changed is that essentially right now the fundamentals of the Spanish economy are much more robust and can obviously deal with a slowdown in the euro zone with much more base and strength three years ago, “he noted.
The fundamentals of the Spanish economy are much stronger
In fact, Guindos recalled Spain has been one of the countries in Europe has grown in the first half despite Europe’s stagnation, with four consecutive quarters of increases that currently allow you to grow in annualized basis, at a cruising speed of between 2% and 2.5%.
Some positive indicators
has further advanced than the figure for the third quarter will be “good” , because the indicators remain positive.
“The recovery continues and I am sure that will continue in the remaining two quarters of fiscal year “said Guindos, after stating that GDP will continue to accelerate and the European environment will improve, since Germany resume growth in the third quarter and Italy and France expected to put in place structural reforms to generate confidence and boost GDP.
According Guindos, the fragility of the euro zone is linked to structural issues in the region, so you do not have to think about the monetary policy of the European Central Bank (ECB) to solve these problems, but in the economic reforms.
In his view, monetary policy can generate liquidity when there are specific problems and help save time, “but is not the cure structural problems “. The ECB also announced in June and a pack of “very important” measures, in the minister’s opinion, probably “work well.”
In the same way, recalled that Europe also has the Covenant Stability and Growth, allows flexibility deficit targets if growth in some countries is below than expected, although, as noted, any European minister has asked this flexibility because meet objectives deficit remains a priority.
Spain will meet the deficit target
In fact, was convinced that Spain will meet its goal of reduce the deficit in the public accounts to 5.5% this year and 4.2% in 2015 In this regard, he recalled being generated significant savings elsewhere -5000 million in interest payments on the deuda– that collection is up nearly 6% , which improve the social security accounts thanks to the recovery of employment and tax reform will not only raise the disposable income of citizens but will improve the functioning of the economy.
has also assured that the provision of debt this year (99.5%) despite the doubts of some international organizations will be fulfilled. According Guindos, this magnitude has grown a lot in the first months of the year by accelerating emissions, but this effect will be tempered in the coming months because the Treasury will reduce auctions and dilate in time.
” The figures reflected in the stability program are perfectly feasible, “he said, after further ensure that exports will also improve in the second half of the year and that the country will end 2014 with a capacity d and funding to the rest of the world close to 1% next and current account surplus to 0.5%.
Guindos has indicated that the market is aware of all these improvements, which has led to the rating agencies to improve the Spanish note. In the future, as explained, the Government continue to work to return to raise the rating of Spain. “I hope this is so,” said.
The price situation in Spain
The minister also reviewed the price situation in Spain after inflation fell three tenths in July, and has recognized that in the next two or three months will remain negative. However, he is confident that the end IPC 2014 with a slight increase , although less than initially expected (0.5%).
While highlighting the need for the Inflation rises slightly in Spain and Europe Guindos explained that low level also has positive effects and that an economic model based on subdued inflation, job creation and wage moderation is “much healthier” than had before the crisis.
However, despite ensuring that wage moderation has been instrumental in the setting, and has recognized that there is scope for some companies or sectors start raise wages employees because they have already gained a lot of productivity and have greatly improved their efficiency levels. “Obviously these companies can raise wages, but must also take into account that inflation is very low,” he stated.
Wages are not the responsibility of government
In any case, recalled that wages are not a responsibility of the Government and are social agents who have to negotiate any increases. “The government does not have a button to set as they have to go down as part of the dialogue of social partners,” he said.
Asked if the Government is considering the possibility of raising the minimum wage Interprofessional (SMI) to recover lost ground freezes in 2011 and 2012, Guindos has merely say this wage affects au n very small percentage of the population and that is not a critical variable in determining wage developments.
Also, has said that the Government does not arise at this time lowering social contributions to the companies, as demanded by employers, since the government decided to focus its strategy on encourage new permanent contracts very attractive measures for entrepreneurs as the flat rate of 100 euros which, in his view, is working very well.
No comments:
Post a Comment