Friday, March 24 2017 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 2 hours 21 min ago
In 2016 the growth was more vigorous in the autonomous communities of the east peninsular. By 2017 and 2018 growth is expected to remain at 2.7%, but the depletion of impulses to domestic demand and tourism, and higher exports justify the least heterogeneity and shift dynamism to the north
Electric vehicles have become more reliable and attractive due to technological progress and government support. However, prospects for mass adoption are still constrained by technological limitations, charging infrastructure, policy uncertainty and oil prices
Fighting in Eastern Ukraine erupted again, just a day after that the first phone call between Trump and Putin since the US president's inauguration. It was the worst escalation since early 2015. The new US administration's policy stance towards the conflict is still undefined and increases concerns and uncertainties about the conflict evolution and the Russian role on it.
The Spanish economy continues to show signs of strong recovery, although less intense than in previous years. Weaker tailwinds explain the slowdown: fiscal policy will shift from expansionary to neutral and the inflation increase in the EMU can lead to an inflexion point in monetary policy. The adoption of new reforms is necessary due to the vulnerability of the economy.
The Spanish economy is growing and creating employment. During the next two years it is likely that just over 900,000 jobs will be created and that the unemployment rate will fall to around 15% by the end of 2018. However, certain risks have arisen.
Annualised growth of 2% last quarter, levels of confidence close to all-time highs, industrial production and exports on the rise, consumer indicators strong, unemployment rate falling for more than three years…
Weekly economic update focusing on the major economic indicators to be released the week of February 13, 2017
The global economy is gradually accelerating on the back of United States growth. Colombia GDP growth will rise from 1.9% in 2016 to 2.4% and 3.3% in 2017 and 2018. Investment will be decisive for reaching theses figures. The progressive reduction of inflation will allow BanRep to slash rates during 2017 and 2018.
OPEC output deal may have a limited impact on prices. Going forward, inventory correction and the lagged effect of CAPEX cuts should lead to higher prices. The recovery of U.S. shale production is expected to prevent a steep upturn in prices. Little to no upside from demand. Slow recovery and convergence to $60/bbl.
On February 7th, Mike Rogers, Republican congressman for Alabama, said he would submit a proposal for financing the wall between the United States and Mexico. Rogers said his bill would seek to pay for the wall by various means, one of which would be the application of a 2% tax on remittances to Latin America
Banxico is likely to retain a pre-emptive approach to anchor inflation expectations
In December 2016, the current credit balance of commercial banks to the private sector grew at a nominal annual rate of 15.3% (11.5% real), lower than the rate observed in November 2016 (17.1%)
After having fallen by more than 7% over the past two years, we expect GDP to grow by 0.9% in 2017 and 1.2% in 2018. The approval of a fiscal reform, lower inflation, declining interest rates, among other reasons, should pave the way for a gradual recovery. However, political tensions and failing to approve the needed social security reform could derail growth.
The economic recovery continues to be modest with the recent data leading our monthly GDP indicator to grow at 1.9% YoY in 4Q16. IP grew by 1.3% YoY in December in calendar adjusted terms, lower than the consensus of 2.3%.