Portion of negative statistics from Spain will affect the movement of the EUR/USD currency pair

Portion of negative statistics from Spain will affect the movement of the EUR/USD currency pair

Portion of negative statistics from Spain will affect the movement of the EUR/USD currency pair

On Thursday, the 31st of March some statistics about the state of the economy was published by the National Statistics Institute of Spain. The most significant is data on the budget deficit, which has exceeded 56 billion Euros. If talking in percentage terms, it is 5.18% of GDP. Let us recall that it has been agreed with the European Commission that the level of the budget deficit shall be more than 4.2% of GDP.

According to authorities the causes of the increased spendings were expenditures on social programs: the fight against hepatitis C, increase of maintenance costs of prisoners in the provinces, the launch of a new branch of street railway service in Aragon.

The costs of supporting the financial sector of the country amounted to 550 million Euros. The report notes that the financing of the state apparatus has not increased, along with the reduction of the mayoralties budget expenditures.

Acting Prime Minister of Spain Marian Rajoy asked the European Commission to exercise flexibility with EU requirements for Spain budget deficit. The politician indicates a positive dynamics of reduction of the budget deficit in his statement. During 4 years the government managed to keep the figure from 9.16% to 5.18%.
Any kind of reaction from the European Commission has not appeared yet.


Portion of negative statistics from Spain will affect the movement of the EUR/USD currency pair


Negative data was also on the index of consumer prices in Spain. These amounted to -0, 8% in annual terms, the experts predicted this indicator at the level of -0.6%. Let us recall that the ECB is trying to boost inflation in the Euro area to the level of 2%. In fact, recently in Spain and some countries in the EU there has been a deflation, thus indicating a low level of solvency of the population of the EU countries.


Portion of negative statistics from Spain will affect the movement of the EUR/USD currency pair


Retail sales in Spain were worse than expectations of analysts, the index was 3.9%. The last point was at the level of 3.5%. Although the index rose, the data had a negative impact on the markets, since the experts expected a higher level of growth in retail sales. In general, published statistics on the Spanish economy shows a slowdown in the pace of economic development.


Share to: