Linde predicts a slower growth until the end of the year – The País.com (Spain)

Linde predicts a slower growth until the end of the year – The País.com (Spain)

The Governor of the Bank of Spain, Luis Maria Linde, appeared Wednesday in the House of Representatives for evaluate the draft State Budget for 2015 Linde has warned that in the remainder of the year the Spanish economy will move to a “slower pace”, not least because of the slowdown in Europe.

The Spanish banking supervisor has highlighted the importance of labor market recovery-until June, exceeded expectations, “although he predicted has been said that this revival will be” more attenuated rhythms. ” Linde has alerted the outside risk that the Spanish economy is subject because of the recession or no growth living France, Italy and Germany.

During his speech, the governor praised the macroeconomic framework on which supports the general state budget for 2015 at this point, has warned that “the high cyclical sensitivity of imports highlights the need to expand the export base and to continue to increase the presence of Spanish companies in the markets with the greatest potential Growth. ” And he added: “It is also an indicator of our competitiveness problems arise not only in exports but also in the domestic market over exports”

With regard to inflation, which round. negative rates in recent months, the Bank of Spain expects “end of the year the rate of inflation may return values, although very low, are positive.” Because of this more favorable scenario experienced by the Spanish economy, “the fiscal effort required to achieve deficit reduction [should drop from 5.5% to 4.2%, an adjustment of about 13,000 million] will be more moderate than in years previous. “

One of the points where more has influenced the governor has been on the impact of tax reform on the accounts for 2015″ The budget forecast anticipates that this revenue loss will be offset by higher buoyant revenue in the context of strengthening the recovery. ” But he warned: “The regulatory changes will require continuous monitoring of the evolution of the collection during 2015 to anticipate possible deviations and, if necessary, to react in time to prevent these result in deviations from public deficit targets “. Linde recalled that the public debt will climb to 100.3% in 2015 “The magnitude of this figure shows the challenge that continues to face the Spanish economy,” he said.

Finally The governor stressed the importance of the progress being made in European economic governance. He highlighted the role of the Single Monitoring Mechanism (MUS), European banking supervisor

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Montoro admits that job creation is also slowing

Finance Minister Cristobal Montoro said on Wednesday that employment has returned to growth in the third quarter, although at a slower pace than in the quarter precedent. “(In the third quarter), they will not give these jerks we saw in the second quarter,” he said in an interview at zero wave.

“But the important thing is that we will see growth on growth, “added the minister also noted that the number of members of Social Security, which includes employees and self-employed – continues.” very positive signs “in recent months, the EPA data for the third quarter will be announced on 23 October.