Spain Business
Spain Business Brief - Wednesday April 30 2008
By h.b. - Apr 30, 2008 - 12:49 PM
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The Bank of Spain has placed economic growth for the year to the end of the first quarter of the year in the country at 2.8%. The number shows that the economic slowdown appears to be gathering momentum since the start of the year.
In the bank’s April bulletin is says that growth in the first three months of the year came in at just 0.4%, and noted that there was less internal demand which increased by only 3%.
Particular affected was the construction industry.
The Bank of Spain has also criticised the 400 € tax rebate being paid to income tax payers in Spain, claiming that it would not have the desired effect of stimulating the economy. They also say that the latest indications show that the slow down in the real estate sector will be faster and deeper than previously thought.
The Euribor rate has ended the month of April at 4.82%, according to the Bank of Spain. It’s the highest rate in the index which is used to set mortgages for the past eight years and means that the final price in mortgage payments is up by about 577 € a year on average.
The European markets expect a harsh policy on interest rates from the European Central Bank this year as it keeps the fight against inflation as its main priority.
Unemployment stabilised across Europe in March according to the latest Eurostat numbers. Of the 27 member countries, the number on the dole fell in 23 of them and Spain was one of the four where there was an increase. In fact the largest increase was in Spain where the index rose from 8.1% to 9.3% over the year. That compares to the Eurozone average of 7.1%.
Meanwhile according to a preliminary circular, Inflation in the Eurozone will fall to 3.3% for April. Despite this reduction of 0.3% over the month, prices remain at high levels because of the high cost of petrol and foodstuffs.
The Spanish current account deficit increased by nearly 7% in the year to February to reach 20.5 billion. The Bank of Spain said the increase was mainly die to an increase in the balance of trade deficit, and in a lesser degree to an increase in the deficit of bank transfers.
Renfe Spanish railways has announced that it is to increase its AVE high speed and long distance ticket prices by 4%. The company says it comes as they are trying to find a fare structure which reflects the distance, speed of the train, facilities on board and time of the journey.
The increase will be enforced from tomorrow May 1, and say more adjustments are likely across the year. It takes the cheapest internet price for the AVE high speed train from Málaga to Madrid to 31.6 € compared to 30.4 € before.
And finally,
Carrefour has paid compensation of 3,000 € to a woman pensioner who slipped over in one of the firm’s hypermarkets in Córdoba. The news comes from the consumers’ group FACUA, which notes that the woman concerned suffered a sprained ankle as a result of the fall on a patch of water.
The Business Brief will not be published tomorrow – May 1, but will be back as normal on Friday May 2.
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