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Spain Business Brief - Monday April 21 2008
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By h.b. - Apr 21, 2008 - 12:51 PM
The Spanish government is to reduce the forecast for economic growth this year.
The Spanish Government is set to announce a reduction in their own forecast for economic growth in Spain this year later. The Secretary of State for the Economy, David Vegara, speaking on RNE radio today has said that the new forecasts will be announced in the ‘next few weeks or even days’, but in any case before the month of May.
The current Government forecast is for GDP growth of 3.1% this year and 3% next. That compares to the latest forecast from the International Monetary Fund, which comes in at 1.8% for this year.
Meanwhile the increase in the price of raw materials in Spain is being noted more here than in other countries in the Eurozone. The cost of energy in Spanish homes has been fuelling inflation according to a new report from Caixa Catalunya.
Mortgage activity in Spain continues its slow down with the latest numbers from the Spanish Mortgage Association, AHE, showing a 13.1 growth compared to 12 months ago at the end of February. The new number for total mortgage credit is now 1.058 billion €, compared to 936,422 million a year ago. The AHE thinks that growth will reduce to 6% - 9% by the end of the year, which compares to the 22.4% growth being seen 12 months ago.
Another sector feeling the economic pinch, is the amount of money being sent back to their home countries by immigrants who are working in Spain. The increase in unemployment and mortgage payments has contributed to reduce the payments to the lowest levels seen for 20 years. Last January immigrants here sent 667 million € out of the country – a quarter of the amount registered in January 2007. The number of unemployed immigrants in Spain is estimated to be around 29,000.
The number of deaths in the workplace in Spain increased 5.8% over the first two months of the year, according to numbers just released by the Ministry of Employment. There were 165 deaths over the two months in a total of 283,831 work-related accidents.
Most of the deaths came, unsurprisingly, in the Construction industry.
Income in power company Iberdola increased by 38% in the first quarter of the year compared to last, to reach 6.3 billion. A large part of that is thanks to the acquisition of Scottish Power which contributed to more than 25% of the results.
The Spanish Government has approved, in the cabinet meeting on Friday, 11 measures to stimulate the economy and make things easier for families facing financial difficulty in the current economic slowdown.
It’s all part of the 10 billion € package announced earlier in the week designed to stimulate the stagnating economy.
The 11 measures are, in brief:
1: Help for families with mortgage payments by extending the loan at no extra cost.
2: Tax reductions, including the famous 400 € income tax rebate for all workers, pensioners and self-employed.
3: The cancellation of Patrimonio Tax, expected to cost the treasury 1.8 billion €. The measure back dated to Jan 1 this year.
4: Help in the re-location of the unemployed to find work. This plan has a budget of 21 million €.
5: Help for companies, with 2 billion in credit for Pyme small businesses.
6: VAT/IVA Payments – Companies can ask for VAT refunds monthly from 2009.
7: Assisted housing – new ICO credits of 5 billion, 2 more than previously planned.
8: Public works – new measures to speed up public works tenders and completion.
9: House construction – Plan to build 150,000 assisted or protected homes each year, and to promote energy efficiency in new buildings.
10: The renovation of old buildings – When the cost of renovation is more than 25% of the purchase price, tax breaks will be awarded including the return of VAT.
11: Foreign Investment – The Government will improve the investment conditions for non residents of Spain.
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Spain Business Brief - Monday April 21 2008
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By h.b. - Apr 21, 2008 - 12:51 PM
The Secretary of State for the Economy, David Vegara - Archive Photo EFE
The Spanish Government is set to announce a reduction in their own forecast for economic growth in Spain this year later. The Secretary of State for the Economy, David Vegara, speaking on RNE radio today has said that the new forecasts will be announced in the ‘next few weeks or even days’, but in any case before the month of May.
The current Government forecast is for GDP growth of 3.1% this year and 3% next. That compares to the latest forecast from the International Monetary Fund, which comes in at 1.8% for this year.
Meanwhile the increase in the price of raw materials in Spain is being noted more here than in other countries in the Eurozone. The cost of energy in Spanish homes has been fuelling inflation according to a new report from Caixa Catalunya.
Mortgage activity in Spain continues its slow down with the latest numbers from the Spanish Mortgage Association, AHE, showing a 13.1 growth compared to 12 months ago at the end of February. The new number for total mortgage credit is now 1.058 billion €, compared to 936,422 million a year ago. The AHE thinks that growth will reduce to 6% - 9% by the end of the year, which compares to the 22.4% growth being seen 12 months ago.
Another sector feeling the economic pinch, is the amount of money being sent back to their home countries by immigrants who are working in Spain. The increase in unemployment and mortgage payments has contributed to reduce the payments to the lowest levels seen for 20 years. Last January immigrants here sent 667 million € out of the country – a quarter of the amount registered in January 2007. The number of unemployed immigrants in Spain is estimated to be around 29,000.
The number of deaths in the workplace in Spain increased 5.8% over the first two months of the year, according to numbers just released by the Ministry of Employment. There were 165 deaths over the two months in a total of 283,831 work-related accidents.
Most of the deaths came, unsurprisingly, in the Construction industry.
Income in power company Iberdola increased by 38% in the first quarter of the year compared to last, to reach 6.3 billion. A large part of that is thanks to the acquisition of Scottish Power which contributed to more than 25% of the results.
The Spanish Government has approved, in the cabinet meeting on Friday, 11 measures to stimulate the economy and make things easier for families facing financial difficulty in the current economic slowdown.
It’s all part of the 10 billion € package announced earlier in the week designed to stimulate the stagnating economy.
The 11 measures are, in brief:
1: Help for families with mortgage payments by extending the loan at no extra cost.
2: Tax reductions, including the famous 400 € income tax rebate for all workers, pensioners and self-employed.
3: The cancellation of Patrimonio Tax, expected to cost the treasury 1.8 billion €. The measure back dated to Jan 1 this year.
4: Help in the re-location of the unemployed to find work. This plan has a budget of 21 million €.
5: Help for companies, with 2 billion in credit for Pyme small businesses.
6: VAT/IVA Payments – Companies can ask for VAT refunds monthly from 2009.
7: Assisted housing – new ICO credits of 5 billion, 2 more than previously planned.
8: Public works – new measures to speed up public works tenders and completion.
9: House construction – Plan to build 150,000 assisted or protected homes each year, and to promote energy efficiency in new buildings.
10: The renovation of old buildings – When the cost of renovation is more than 25% of the purchase price, tax breaks will be awarded including the return of VAT.
11: Foreign Investment – The Government will improve the investment conditions for non residents of Spain.
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Readers' comments:
Mick
23 Apr 2008, 12:01
23 Apr 2008, 12:01
In point 5, can anybody tell me what Pyme (small businesses) means, please?
Please keep to the subject. Opinions published here are of our visitors, not the Typically Spanish team. Comments which go against Spanish laws or which are libellous are not allowed. We reserve the right to delete any comment we wish.
Por favor, céntrate en el tema. Son las opiniones de los internautas, y no las de Typically Spanish. No está permitido verter comentarios contrarios a las leyes españolas o injuriantes. Reservado el derecho a eliminar los comentarios que consideremos fuera de tema.
Por favor, céntrate en el tema. Son las opiniones de los internautas, y no las de Typically Spanish. No está permitido verter comentarios contrarios a las leyes españolas o injuriantes. Reservado el derecho a eliminar los comentarios que consideremos fuera de tema.
