Add and follow. The Bank of Spain continues to make evident the Spanish recovery. This time, Governor Pablo Hernández de Cos raised his voice to denounce unemployment in the country. "We are all very happy that the unemployment rate has been reduced from 27 to 15%. But this level is unacceptable in any developed country, "he commented at the official dinner of the Spain Investors Day, organized by Estudio de Comunicación. All this, in addition, without forgetting to send a notice to the bank: "The financial sector must make a particular effort to improve its reputation and introduce measures that mitigate the risk of committing inappropriate behavior»
The maximum representative of the Spanish supervisor has remembered the challenges that Spain has ahead. Regular speech at the Bank of Spain (labor market, financial system, public debt, economic growth, demographics …) but with the exception that this time its audience was not economists or journalists, but the business and investment fabric. And with the case of BBVA and Commissioner Villarejo in full swing.
Bankia, AENA, IAG, Cuatrecasas, Iberdrola, Inditex … Endless referring companies, each of them in its sector, have witnessed the tug of the ears of Hernández de Cos to the evolution of the labor market. The governor has denounced the temporary nature of employment, as well as the exclusion of certain groups, such as the lower professional qualification.
In spite of everything, he has also had words that predict a future that is flattering in part and uncertain on the other. The maximum representative of the Bank of Spain has indicated as a differential factor of the recovery the «deleveraging process of the private sector», As well as that the recovery of the investment will walk at a better pace than that of our European partners. He has even highlighted the improvement of competitiveness and put in value the exports, essential in Spain.
Deceleration of the economy
Regarding growth, Hernández de Cos made reference to the fact that the economy would have advanced in 2018 at a rate of 2.5%. Nadia Calviño, Minister of Economy, will be responsible for publicizing this figure in the day of Spain Investors Day on Wednesday … but all authorized voices point to the data provided by the governor. Two ministers of Pedro Sánchez (Teresa Ribera and Reyes Maroto) have commented on Tuesday that the previous year grew by around 2.5-2.6%.
If the figure of the Bank of Spain were met, it would be a new setback for the Executive's estimates. Until after summer, the Government predicted that in 2018 Spain would grow to 2.7%; he lowered his forecast to 2.6% in October. And did the same with that of 2019 a few weeks ago (from 2.3% to 2.2%).
In this way, Hernández de Cos has emphasized the "deceleration of growth" both by internal factors as external, with special emphasis on these seconds. Specifically, it has focused on the monetary policy of the European Central Bank (ECB) and the existing political tensions.
The Brexit, the commercial war, the decisions of the United States and the volatility of the emerging markets are the concern of the Bank of Spain. Without forgetting, either, the demographic crisis of Spain.