• In its report on Economic Outlook it advances that Spain will continue reducing the public deficit up to 2% of GDP this year and to 1.3 of GDP in 2020, in line with the Government
  • Strong job creation and domestic demand will continue to drive growth, which will continue to be higher than the average for the euro zone

The Organization for Economic Cooperation and Development (OECD) forecasts a growth of the Spanish economy of 2.2% in 2019 and 1.9% in 2020. This estimate coincides with the Government's forecasts included in the Stability Program and is in line with those of the main national and international organizations. In this way, Spain will continue to record economic growth above the average for the euro zone.

In his report on Economic Perspectives, he points out that Spain will continue to make progress in reducing the public deficit, which will be at 2% this year and will fall to 1.3 in 2020, also in line with the Government's plans.

The OECD confirms the improvement of labor market conditions and foresees that the solid creation of employment will be maintained, which will allow the unemployment rate to reach 13.8% by the end of the year.

The OECD highlights that the Spanish economy is showing a high degree of resistance. Domestic demand will continue to be the engine of growth, with estimated increases of 2.2% for this year and 2.1% for 2020. It also foresees that private consumption will remain strong, driven by the increase in employment, inflation moderate and the effect of measures such as the rise of salaries in the public sector, pensions and the minimum wage that, according to the OECD, have increased the real disposable income.

Business investment will continue to grow, supported by dynamic domestic demand, low financing costs and better profit margins. The forecast for the foreign sector is to maintain a neutral contribution in the projection period.

The diagnosis of the OECD on the Spanish economy is in line with that of the Government, not only in relation to the main macroeconomic indicators, but also in the priorities in terms of economic policy.

The OECD encourages the Government to maintain its medium-term budgetary objectives to ensure a reduction in public debt and favor growth and the reduction of inequalities.

It also calls for reforms to boost productivity growth, policies that promote competition and innovation, improve ongoing training to increase the training of workers in new skills and establish support mechanisms to reduce school dropout and promote equality opportunities

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  • Nadia Calviño has participated in London in City Week 2019, one of the main meetings of managers of financial services companies
  • He has also held a series of meetings with international investors, habitual in his agenda, which will continue tomorrow in Paris

The Minister of Economy and Business, Nadia Calviño, has participated in the ninth edition of City Week, organized by the International Financial Services Forum, which brings together executives from the main financial services companies every year in London.

In his speech, he highlighted the strength of the Spanish economy. Thus, it has highlighted that growth will continue to remain above the average of the euro zone and its main partners, with a forecast increase in GDP of 2.2% for 2019: "a prudent estimate and in line with the forecasts of the main organisms. "

The minister reiterated the Government's commitment to debt reduction and budgetary discipline, which has allowed Spain to reduce the deficit to 2.5% of GDP in 2018 and exit the excessive deficit procedure of the European Union after 10 years: "we hope to reduce the deficit to 2% of GDP in 2019 and maintain this trend in the coming years until reaching the budget balance in 2022."

This commitment to fiscal consolidation is accompanied by a social agenda, focused on reducing inequalities, and structural reforms aimed at increasing potential growth and facing future challenges such as climate change, digitalization and technological changes.

Also, the minister has held several meetings with international investors, usual in its agenda, which will continue tomorrow in Paris.



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  • Core inflation stands at 0.9% due to the rebound in tourist prices for Easter May 14, 2019.

The interannual rate of the general Consumer Price Index (CPI) stood at 1.5% in April 2019, as the INE advanced at the end of last month. The increase of two tenths was due to the rise in the prices of services, influenced by the calendar of Holy Week.

The prices of energy products reduced their rate of increase in April by two tenths, to 5.4%, due to the slowdown in gas prices, which practically stabilized, 0.2% year-on-year, and, to a lesser extent, of fuels and lubricants, which increased by 6.4%.

The prices of unprocessed food increased 1.8% year-on-year, with the drop in fresh fruit prices, -1.9%, while the prices of fresh vegetables accelerated to 10.6%.

Core inflation, which excludes the most volatile elements of the CPI (unprocessed food and energy products) increased two tenths in April, to 0.9%, mainly due to the prices of services, which increased by 1.7% and, in particular, of the tourist packages, which rose by 3.4%, influenced by the celebration entirely in April of Holy Week, unlike last year that began in March. The inflation of the rest of the components of the CPI remained relatively stable, moderating slightly the processed food to 0.3% and remaining at 0.2% of non-energy industrial goods.

In April, the interannual rate of the CPI increased in all autonomous communities except Galicia, where it remained at 1.4%. The highest increases, of four tenths, occurred in Navarra (2.1%), La Rioja (1.7%) and Aragón (1.6%).

The interannual rate of the CPI at constant taxes stood at 1.5% in April, as did the general CPI.

The INE has also published the harmonized CPI (IPCA) corresponding to the month of April, whose interannual rate increases three tenths, up to 1.6%. The inflation advanced by Eurostat for the whole of the euro zone is 1.7% in this period, resulting in a favorable differential for Spain of 0.1 percentage points.

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The Bank of Spain and the Andean Development Corporation organize the XIV Latin American Analysis Forum



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  • The European Bank for Reconstruction and Development (EBRD) has made the appointment official at the Annual Meeting that takes place today and tomorrow in Sarajevo
  • It is a rotating position for a period of one year. The members of the Board of Governors make this position compatible with their respective positions in the countries and institutions they represent

    The Board of Governors of the European Bank for Reconstruction and Development (EBRD) has made official today the appointment of the acting Minister of Economy and Business, Nadia Calviño, as its new president. The appointment as Chair of the Board of Governors has taken place at the Annual Meeting and Business Forum of the EBRD held today and tomorrow in Sarajevo (Bosnia and Herzegovina).

    The Acting Minister assumes the Presidency of the Board of Governors until the next annual meeting, in May 2020. She replaces Vice President of the European Commission Jyrki Katainen in this rotating position. The Board of Governors is made up of representatives of the countries and institutions that are part of the EBRD, which make this function compatible with their respective positions.

    Among the issues that the Board of Governors must decide in the next twelve months are the appointment of a new president of the EBRD and the Bank's strategy for the period 2021/2025.

    The European Bank for Reconstruction and Development was created in 1991 to support the transition to a market economy in the countries of Central and Eastern Europe. Today it has 67 members and also operates in Asia and the southern Mediterranean. Spain is a founding member of the EBRD and has a 3.4% stake in its social capital.

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  • The Commission maintains the growth forecast for Spain while it revises its estimate for the euro zone one tenth downwards
  • The Commission notes that job creation is still higher than anticipated
  • Spain will leave the corrective arm of the Stability and Growth Pact, having reduced the deficit in 2018 to 2.5%

The European Commission today published its Spring economic forecasts, with a one-tenth decline in growth in the euro zone compared to the forecasts for Winter published in February. In this context, the Commission maintains for Spain its growth forecast of 2.1% of GDP in 2019 and 1.9% in 2020.

The Commission's estimates confirm that Spain continues to have economic growth above the average of the European Union, the euro zone and the main countries in our area. The positive growth differential has increased since the second half of the year.

Likewise, the most recent economic indicators support the positive evolution of the economy. The acting Minister of Economy and Business, Nadia Calviño, highlighted "the good tone of domestic demand at the beginning of the year, as evidenced by the National Accounts data advanced by the INE that show an acceleration of GDP growth up to 0.7% in the first quarter. "

The Commission notes in its report that employment continues to grow in our country above expectations and estimates that the unemployment rate will fall to 13.5% in 2019 and 12.2% in 2020. In this regard, the minister has indicated that the records of affiliations to the Social Security "confirm that in April the good pace of job creation continued, with a growth of 3% over the previous year".

The Government maintains its growth forecast of 2.2% for 2019 and 1.9% for 2020, included in the macroeconomic table that accompanied the Stability Program sent to Brussels last week, validated by the Independent Authority for Fiscal Responsibility ( AIReF). This forecast corresponds to that published by the Bank of Spain in March.

As regards the public deficit, the European Commission foresees a reduction from 2.5% of GDP in 2018 to 2.3% in 2019 and 2% in 2020. In this estimation, the measures of income included in the draft General State Budgets, but the measures of expenditure adopted. The reduction of the deficit achieved in 2018 will allow Spain to leave the corrective arm of the Stability and Growth Pact. The Commission forecasts for 2019 a decrease to 96.3% of the debt-to-GDP ratio and to 95.7% by 2020.

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  • The Stability Program confirms the commitment to the fiscal consolidation process, which will allow the Spanish economy to reach the budgetary balance in 2022
  • The Independent Authority for Fiscal Responsibility (AIReF) has endorsed the new macroeconomic scenario as prudent
  • The reform program is aligned with the recommendations of the European Commission and the main international organizations

The Delegate Commission of the Government for Economic Affairs has updated the Stability Program 2019-2022 and the National Reform Program of 2019 for its referral to the European Union. The shipment is made in compliance with the obligation of all Member States to present their National Reform Programs and their Stability Programs each year in the month of April to the European Commission, within the framework of the European Semester for the coordination of policies economic

In both documents, the acting Government explains the recent evolution of the Spanish economy, the progress in the reform agenda and the fulfillment of the specific recommendations formulated by the European Council in July 2018, as well as exposing the macroeconomic and fiscal scenario to medium term.

Stability Program 2019-2022

The Stability Program details the macroeconomic scenario foreseen by the Government for the period 2019-2022, which foresees that the Spanish economy will gradually converge towards the potential growth rate and will continue to maintain positive growth differentials with respect to the euro area.

The Independent Authority of Fiscal Responsibility (AIReF) has endorsed the new macroeconomic scenario as prudent.

Spain's GDP growth reached 2.6% in 2018, in line with the Government's forecasts. The Spanish economy grew above the euro zone average for the fourth consecutive year and the positive growth differential widened in the second part of the year. The Spanish economy has shown a high degree of resistance in a less favorable international context, thanks to the remarkable dynamism of domestic demand and an intense process of job creation. This positive trend continues in the first months of 2019, ratified by the advance of National Accounts published today by the National Institute of Statistics (INE) which shows a growth of 0.7% of GDP in the first quarter, one tenth higher than that of the fourth quarter of 2018.

Forecasts suggest that domestic demand will continue to be the engine of growth in the projection period. Among the components of domestic demand, private consumption is expected to continue growing at high rates. The investment in equipment will maintain an expansive path based, basically, on the growth of the demand, the reorganization of the balance sheets of the companies and the favorable financial conditions. With regard to the foreign sector, real exports of goods and services will grow at rates close to 3%, higher than in 2018 (2.3%). On the other hand, imports will grow at rates similar to those of exports, in line with the evolution of demand.

In this context, it is expected that the balance of the current account balance will continue to be surplus, standing at 0.5% of GDP at the end of the forecast period and accumulating 10 consecutive years of external surplus, which will allow to continue reducing the indebtedness external of the economy.

Economic growth will continue to create jobs, with rates of change close to those of GDP throughout the forecast period. With this, the unemployment rate will continue to fall, reaching below 14% in 2019 and 10% of the active population in 2022, a figure not reached since the beginning of 2008.

The Stability Program confirms the process of fiscal consolidation, with a forecast of a reduction in the public deficit of up to 2% in 2019 and a gradual decrease in the coming years that will allow the budget balance to be reached in 2022.

Starting in 2019, primary surpluses will be recorded, which will make it possible to accelerate the reduction of the public debt to GDP ratio, to below 90% at the end of the forecast period.

National Reform Program

The Delegate Commission of the Government for Economic Affairs has also approved the referral to the European Commission of the National Reform Program (PNR).

This Plan includes structural actions to increase the potential growth of our economy in order to face future challenges. In line with the recommendations of various international organizations, with the 2030 Agenda for Sustainable Development and with the roadmap that has guided the Government's action, the National Reform Program includes a coherent set of reforms and actions to lay the foundations for a sustainable and inclusive growth with seven axes:

(1) Fiscal sustainability and inclusive growth; (2) Training and human capital; (3) Ecological transition and sustainable development; (4) Scientific and technological progress; (5) An efficient and fair labor market (6) Reduction of inequality and protection of the Welfare State and (7) Efficient administration and modernization of the institutional architecture.

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  • The two selected projects have a higher aggregate budget of more than 36 million euros, of which more than 10 million will be co-financed by Red.es through the ERDF
  • The projects belong to Temporary Business Unions headed by Vodafone and Telefónica, and will be located in Andalusia and Galicia, respectively

The Ministry of Economy and Enterprise has resolved the call for aid for the development of two pilots of 5G technology, launched by Red.es, with the selection of two projects to be developed in the autonomous communities of Andalusia and Galicia. The aggregate budget amounts to more than € 36 million, of which more than € 10 million will be co-financed by Red.es through the European Regional Development Fund (ERDF), under the Multiregional Operational Program of Spain (POPE).

The two projects correspond to the Temporary Business Unions headed by Vodafone Spain and Huawei Technologies Spain, whose pilot will be developed in Andalusia, and composed of Telefónica Móviles España, Telefónica de España, Telnet Redes Inteligentes, Cinfo Customized Informational Content, International Advanced Ophthalmology, Idronia Multimedia Solutions, Nokia Spain and Ericsson Spain, whose scope of action will be Galicia.

Both initiatives have multiple use cases that take advantage of the potential of 5G technology in key sectors for society such as health, infrastructure or defense.

Pilot project in Andalusia

The 5G technology pilot project to be deployed in Andalusia by the UTE, composed of Vodafone Spain and Huawei Technologies Spain, has a duration of 30 months and a budget of more than € 25 million (€ 25,410,348.57), for which it has been requested an aid of more than € 6 million (€ 6,348,836.88) that will be co-financed by Red.es under the ERDF.

The project includes 32 cases of use that will be developed in very diverse areas: agriculture, health, smart cities and territories, security and defense, society, economy and digital culture, digital transformation and tourism. There are ten cases of use that experience virtual reality and augmented reality in different areas, five that revolve around applications with drones and three use cases that explore facial recognition, among others.

To carry out the use cases, a 5G network will be deployed in several points of the provinces of Málaga, Cádiz, Sevilla, Huelva and Jaén: the urban environment of Seville (historic center, Isla de La Cartuja, Real de la Feria and surroundings of FIBES), the surroundings of Malaga (center of Malaga, Andalusian technology park, María Zambrano station, Digital Content Center and Automobile Museum), the port of Huelva, Guadalema de Quinteros, the Airbus factory in Puerto Real, Port of Algeciras and the Atlas airfield in Jaén.

Pilot project in Galicia

The 5G technology pilot project to be developed in Galicia is presented by the UTE Telefónica Móviles España, Telefónica de España, Telnet Redes Inteligentes, Cinfo Customized Informational Content, International Center for Advanced Ophthalmology, Idronia Multimedia Solutions, Nokia Spain and Ericsson Spain. It has a duration of 24 months and a budget of more than € 11 million (€ 11,500,164.02), for which an aid of more than € 4 million has been requested (€ 4,600,065.61), which will be co-financed by Red.es charged to the ERDF.

The project includes eight use cases that will be developed in very diverse areas such as the retransmission of events, the connected car (C-V2X), the supervision of railway infrastructures by drones, and industry 4.0 with three use cases based on techniques of augmented reality, fixed wireless access (FWA) and health (robot for remote ophthalmological diagnosis). The use cases, in addition to the experimentation with the 5G network, include the development of applications and artificial intelligence algorithms.

In addition to access to the infrastructures deployed for the pilot project, Telefónica will make available to third parties (companies, SMEs, startups, etc.) the physical infrastructure, as well as the management, support and advice of THE THINX laboratories (laboratories focused on IoT technologies). ) located in Madrid and Barcelona and to which in 2019 they will be equipped with 5G technology.

To carry them out, a 5G network will be deployed in several points of the four Galician provinces: the Navantia pavilions in Ferrol, the RC Deportivo de la Coruña facilities in the Riazor stadium, Abegondo, the Cereixal tunnel in the A-6 and the urban nuclei of the cities of Vigo and Orense.

About the call

The public call for aid for the development of 5G technology pilot projects was launched by Red.es at the end of 2018 for a value of € 20 million, aimed at a territorial scope of action. The call that has been resolved today has received a broad response from the sector upon receiving a total of eleven applications, which represented an aggregate budget of € 128 million.

The pilot projects will be developed in the frequency bands 3.4-3.8 GHz and 26 GHz, identified in the European Union as priorities for the launch of 5G services.

All the information is available in the Red.es website.

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  • The number of employed persons stands at 19,471,100, with an interannual increase of 3.2%, the highest rate of the last three years
  • Unemployment decreased by almost 442,000 people, -11.6% year-on-year, and the active population increased by 155,100 people in the last year. The unemployment rate is reduced by 2 points to 14.7%
  • There are 12,124,000 employees with an indefinite contract, a record number for the entire historical series
  • The number of households with all their assets unemployed decreases by 152,500 and increases by 357,500 by households with all their assets occupied

According to data from the Labor Force Survey (EPA) published today by the National Institute of Statistics (INE), employment increased by 596,900 people in the last year, the highest figure since 2007. The number of employed is 19,471 .100, with an interannual increase of 3.2% in the first quarter of 2019, the highest rate in the last three years and the second highest since the crisis began.

It should be noted the increase in female employment, which increases 3.3% year-on-year, to reach 8,872,000 people, the highest figure in the entire historical series in a first quarter.

The creation of employment in the last year has been concentrated mainly in the private sector, with 489,100 more employed, and in permanent hiring, with 455,100 more jobs. Likewise, employment has been created in all sectors, mainly in Services, with 429,400 more employed, followed by Construction, with 129,500, Industry with 32,100 and Agriculture, with 5,900.

The increase in occupation has also been generalized in all the Autonomous Communities. Emphasizes the positive evolution of Andalusia, with 138,500 more employed, Catalonia, with 87,700 and the Community of Madrid with 83,100.

Record of employees with indefinite contract

In the first quarter of 2019 there were 12,124,000 employees with an indefinite contract, a record number for the entire historical series. More than 80% of new salaried employment is undefined (455,100 employed).

In the last twelve months, full-time employment has increased by 510,500 and part-time employment by 86,400.

The unemployment rate is reduced two points in the last year

Unemployment was reduced by 441,900 people in the last twelve months, -11.6% year-on-year, standing at 3,354,200 people. This is the lowest number of people in unemployment in a first quarter of the year since 2008. With this reduction the unemployment rate drops two points in the last year and stands at 14.7%.

This decrease occurs in a context of an increase in the active population for the fourth consecutive quarter, with an interannual increase of 155,000 people.

The number of households with all assets unemployed has been reduced in the last year by 152,500, while those with all their members employed have increased by 357,500.

Quarterly evolution

The data for the first quarter reflect the seasonality of the labor market in Spain and the "calendar" effect when Easter fell in April. Employment fell by 93,400 people compared to the last quarter of 2018, with an increase in undefined employment of 89,900 people and a decrease in temporary employment of 185,800 people. With seasonally adjusted series, employment increased 0.76% quarter-on-quarter.

Regarding unemployment figures, affected in the first quarter by seasonality and the evolution of the active population, the number of unemployed rose by 49,900 people compared to the fourth quarter of 2018. However, in seasonally adjusted terms, unemployment reduced -2.9%. In this period, unemployment has declined among those over 55 (-4,600 people), among the long-term unemployed (-22,800) and among people seeking their first job (-8,800).

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