News and Reviews European Economic Zone

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News and Review of European Economic Zone (France)

 

French Got Recession

Thursday, May 16, 2013

 

Government-run austerity policies and global economic uncertainty seemed successful performance of the French economy worsens. French GDP contracted 0.2% for the first quarter of 2013; worse than the estimated 0.1% decline although unchanged from the revised publication of the last quarter 2012, which also contracted 0.2%. With the economy contracted for two consecutive quarters then the French are now officially fallen into recession. Subtract Euro gains after the news was released. EUR / USD is now trading 1.2930; trying to stay away from daily highs 1.2940

 

Recession experienced by the French is certainly confirms recession being experienced by the euro-zone economy. Recession being experienced by the 2 largest economy in the euro zone would provide an excuse to ease the implementation of the Paris austerity policies urging the euro zone to take a pro-growth policies. Poor performance of the French economy could also be further evidence of the worsening debt crisis in the euro zone.

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Economy Turned Positive Optimistic

Friday, May 17, 2013

 

French finance minister, Pierre Moscovici, today said an optimistic attitude in efforts to accelerate the country's economy. Moscovici believes France is able to record economic growth in the second half of this year despite recent data showing the trend of the recession still exist.

 

French Finance Minister estimated gross domestic product grew in the second half after a slow 0.2% in the final quarter of 2012. "Projections for the second quarter is better, but let's be realistic at this time," he said in an interview with RTL radio station. He seemed to not want economic agents expect too much because of the multi-dimensional crisis continues to haunt the European region.

 

Slowdown in the second largest economy euro zone is to grip the president Francois Hollande. The head of government in a difficult position due to continued pressure from the media and political opponents. The two biggest problems that has not yet completed is high unemployment and public spending components.

 

France's economy is predicted to weaken 0.2% this year according to a survey published FocusEconomics earlier this month. Euro exchange rate observed at the level of 1.2857 against the dollar on Friday trading session.

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News and Review of European Economic Zone (Spain)

 

Banking bosses Spanish Economy Recovers Optimistic this Year

Friday, May 17, 2013

 

The country's fourth-largest economy in the euro zone in recession in the first three months of 2013. The debt crisis has made the business and consumer sectors are not passionate anymore. But that does not mean the economic and financial actors to be skeptical.

 

Executive Director of Banco Santander estimates that the critical phase of the Spanish economy will see the culmination in the second quarter of 2013. But in the second quarter and the fourth conditions will change as the economy improves. "Near the end of the year, we will begin to see better consumer demand," said Rodriguez Inciarte at an event in Tokyo some time ago.

 

Projections of Spain's biggest bank officials is in line with the expectations of most observers. Recovery in exports and consumption line is believed to be driving a long stagnant GDP rate. Spain's economy contracted half a percent in the first quarter compared to the previous quarter. Conditions like this slowdown lasts for seven consecutive quarters, along with the grim situation in the Euro zone.

 

Party Standard & Poor's and Fitch Ratings have not been revoked warning potential further downgrade in the near future. But sure Inciarte unlikely because the rating agencies tend to assume the worst situation. The last time Spain debt rating cut by S & P from BBB to BBB-status or a step above 'junk in October 2012. The state budget deficit is predicted up to 6.3% of GDP this year, higher than the previous target of 4.5%. "For the first time Spain had a positive balance of payments, the rate of exports faster than imports so as to erode debt," he added Director of Banco Santander.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB: LTRO Returns Next Week Declining Sharply

Friday, May 17, 2013

 

Loan repayment amount obtained by euro zone banks through the Long Term Refinancing Operation (LTRO) will decline sharply in the next week, according to data from the European Central Bank released Friday.

 

The ECB said that four financial institutions will refund € 1.02 billion ($ 1.31 billion) loan funds obtained from the first phase of the ECB liquidity operations in December 2011. While the other 3 will return the bank loan of € 104.3 LTRO 2nd phase, which was launched 2 months later. Total loan repayment next week is far below the € 6.4 billion paid this week.

 

So far the Euro zone banks have returned approximately € 285 billion loan fund of about € 500 billion disbursed through 2 stages ECB liquidity operations.

 

While some analysts have argued that the decline in loans from euro zone banks was widely expected, following a decline in ECB's benchmark interest rate. Higher repayment would potentially boost interbank lending rates to attract liquidity from the market.

 

ECB earlier this month has memangkasan interest rates by 25 bps to 0.50% and pledged to continue to provide financial assistance to euro zone banks as much as necessary, until at least mid-2014.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB's Asmussen: Phase Term Low Interest Rate Risk It

Monday, May 20, 2013

 

Joerg Asmussen, a member of the executive board of the European Central Bank said that policy makers should be aware of the risks associated with maintaining low interest rates fatherly long period of time.

 

The ECB should be "watching closely that in fact, a long phase of low interest rates will take the risk because it will tempt investors to seek higher returns elsewhere," Asmussen said in a speech in Berlin today. "Such a situation would lead to capital flight to other places.

 

The central bank has cut its benchmark interest rate to the lowest at 0.5 percent this month and ECB president Mario Draghi mengisyartkan that he is ready to reduce the future cost of the loan if the economic outlook deteriorates. Policy makers also look at other options to revive the asset securities markets and stimulate lending to small firms.

 

"We've done a lot of things to overcome this crisis, in our mandate, we have memnerikan significant contribution to preventing the worst-case scenario," said Asmussen. "Our policy in this situation will remain expansionary as long as it takes" and "we will do what we thought it was because the only currency whose future is bad and there is no doubt on us to make a more stable currency, "he added.

 

The German economy, which is the largest in Europe, "strong enough" at this point and growth will increase this quarter, said Asmussen. While the French economy, the second largest in the euro area, are having problems, especially in terms of competitiveness, "Asmussen said that he was" optimistic "that a man he knew in France should immediately act on this issue.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Bundesbank Germany Optimistic In Economic Recovery

Tuesday, May 21, 2013

 

Germany's economic recovery will be stronger in the current quarter compared to the first 3 months of 2013, despite the euro zone debt crisis remains a significant risk, according to the German central bank on Tuesday. Recovery of the construction sector, which is delayed by weather in the winter and the signs of revival industrial sector into a strong reason for a more optimistic outlook, the Bundesbank said.

 

The combination of strong exports and structural reforms undertaken at the beginning of this decade has helped the German economy against most of the effects of the euro zone debt crisis, which has undermined many Euro bloc countries during the last 3 years.

 

Economic data released last week showed that Germany was the only major euro zone economy is still experiencing growth in the first quarter, with posted a modest gain of 0.1%. While the economic output of the 17-nation bloc itself should extend the contract for 6 consecutive quarter with a fall of 0.2% in the period from January to March this year.

 

For the 2nd quarter of 2013, "strengthening economic growth will happen," said the bank's headquarters in Frankfurt. Bundesbank said that accelerated growth will not only be supported by a rebound in the construction sector, but the real increase in new industrial orders have raised projected exports and equipment investment, two factors that traditionally have sustained economic growth in Germany.

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Monti: Italy Holds Elections Will Not In Near Time

Tuesday, May 21, 2013

 

Back tension pervaded Italy's new coalition government was formed a few weeks after, raise questions about how long the government will survive. But former Prime Minister Mario Monti said he was confident that there would be no election in the near future. "I think Italy will not hold elections within 6 months for 2 reasons," Monti said at a press conference in Singapore on Tuesday in his first public speech after removal of the post of Prime Minister in April.

 

First, Monti said that he believes the leadership of the new Prime Minister Enrico Letta is "unequivocal" and "right." "He is also very confident to proceed in accordance with EU policies, especially fiscal policy and structural reforms suggested the European Union," he said .

 

The second, he said that the elections are unlikely to be held until the election law a new set, which will probably take more than 6 months. "Everyone in Italy agree that the Italian law requires that new elections to cover the shortfall in the current electoral law is." "Since the recovery legislation will be related by other aspects of institutional reform, it will likely take more than 6 months," he added.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

IMF Urges UK Government End Tightening Program

Wednesday, May 22, 2013

 

International Monetary Fund on Wednesday urged the British government to re-loosen pengetatannya program to avoid the long-term impact on the growth prospects of the UK. Launched in 2010, the program is the first policy tightening from the government, and Finance Minister George Osborne has indicated that he will not change course.

 

The IMF has always supported the tightening plan, allowing Osborne to use consent as a validation of an ambitious policy to improve the state of public finances. However, the economy has been stagnant since mid-2010, and the IMF warned that the situation without growth in a long time can be bad for the long term, the lack of business confidence to invest and make the economy more productive and able to increase exports. The IMF said that the UK "is far from a strong recovery and long-lasting" and further budget cuts "would weaken the output, with the risk of permanent loss of productive capacity."

 

"The main risk is a slow growth rate continuously hurt growth prospects in the medium term," the IMF said. "After 5 years of weak economic activity, additional policies are needed to increase the expectation of long-term growth potential, while re-balancing the need for large investments and economic transformation that is more export-oriented."

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Greek Maybe Time For More Can Achieve Fiscal Targets

Thursday, May 23, 2013

 

The euro zone will probably give Greece more time to meet the fiscal targets agreed as a condition of an international bailout, said the head of the eurozone finance ministers on Thursday. "The EC approach to fiscal consolidation is more flexible, providing more time for some countries to achieve the target. Thought Greece one of them if necessary," said Jeroen Dijsselbloem newspaper Kathimerini.

 

European countries agreed last year to extend the maturities and reducing interest on Greek bailout fund fatherly help trim levels are already high debt level to 124% of GDP in 2020, of the estimated 173% this year. They promised more convenience if Greece can meet its fiscal target of a balanced budget and released in 2013.

 

Dijsselbloem said Greece's fiscal progress so far satisfactory, adding that the euro zone finance ministers will assess whether Greece deserves more ease debt in 2014. "We will meet in 2013 fatherly see what else will be needed if Greece has reached the set target," he said in an interview. "We have not made any decisions regarding the shape ease the debt will be given and whether it will involve the removal of part of bilateral loans."

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

BoE's Broadbent: Japanese Monetary Policy Is a Great Experiment

Thursday, May 23, 2013

 

Japan is doing "great monetary experiment", which will lead to volatility in the market, according to Ben Broadbent, a member of the Monetary Policy Committee Bank of England. "Of course, Japan was in the midst of great monetary experiment, so I think there will be volatility in the stock market and the bond market," Broadbent said on Thursday.

 

Japan, the world's third largest economy is striving to revive its economy and end deflation for two decades. As part of this effort, the Bank of Japan took aggressive monetary policy strategy.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Supply and Supports Consumer Spending UK GDP

Thursday, May 23, 2013

 

The UK economy returned to growth in the first quarter as the company piled up supply and increase the level of consumer spending, offset a decline in the level of exports. Gross domestic product increased by 0.3% in the first quarter, according to estimates released last April 25, according to the Office for National Statistics in London. Supply company increased as much as 2.5 billion pounds (3.5 billion dollars) in the first quarter, including 0.4% of GDP. Consumer spending increased by 0.1%.

 

Economy returned to growth, together with the strengthening of the various survey results, triggering the Bank of England governor Mervyn King this month to say the current recovery "is in plain sight." However, retail sales fell in April, and the International Monetary Fund said yesterday economy is still "far from a strong recovery and long-lasting."

 

"The economy is still weak" and "early prospects for growth in the second quarter does not look promising," said Michael Saunders, economist at Citigroup Inc.. in London, before the GDP data was released. Assessment of the IMF is a "correction of a realistic estimate of the current recovery BOE." Ekonm estimate GDP grew by 0.3% in the first quarter. Of last year, GDP increased 0.6%.

[mynameisandhy]

News and Review of European Economic Zone

 

Weidmann: ECB Not Fully Acting To Overcome Crisis

Friday, May 24, 2013

 

Bundesbank head Jens Weidman on Thursday said that not all do it at the ECB for the euro zone crisis, the pressure from other ECB policymakers to the bank so as to widen the range of policy tools.

 

Speaking in Paris, Weidmann said the ECB is ready to help to fight the crisis with cut interest rates, banks and provide liquidity in the bond market interventions in the euro area.

 

"While monetary policy can not solve the crisis, we were truly united in the Board of Governors of the ECB," said Weidmann, a member in the policy-making body, who said in a speech on "Opportunities and Challenges of the Euro zone crisis."

 

"Monetary policy, which is also called the Eurosystem (of central bank euro zone) ready in conduct to reduce the crisis," he added.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB's Draghi Want to Accelerate European Integration

Friday, May 24, 2013

 

The euro-zone is now more stable, although economic conditions remain challenging, according to ECB President Mario Draghi. Head of the European Central Bank again called for the government to continue reforms and banking union plans. "Europe must speed up integration, including banking union," said Draghi who also point out the need to sacrifice budgetary and structural policies sovereignty.

 

ECB's Draghi defended the bond-buying program, which until now has not been activated by members of the euro zone. "Measures taken by the ECB has given the government more time to fix the budget and banks to improve capital ratios. There are positive signs that demonstrate improved financial condition. Lending rates in the euro zone experienced improvement despite economic conditions remain challenging," said Draghi.

[mynameisandhy]

Need Trimming Maybe Portugal 2014 Deficit Target

Friday, May 24, 2013

 

Portugal is trying to reach its deficit target this year but the government may take further easing for the 2014 deficit targets agreed with the EU and IMF, said Prime Minister Pedro Passos Coelho on Friday. In the current revision of the bailout terms, Lisbon must reduce the deficit to reach 5.5% of GDP this year from 6.4% last year, and then to 4% in 2014 and 2.5% in 2015.

 

"The government does not deny that dibutuhkanfleksibilitas further towards the target in 2014," Passos Coelho said in Parliament. The European Union and IMF earlier this year has lowered the target and next year in March due to a deeper recession than forecast in Portugal and Europe.

[mynameisandhy]

News and Review of European Economic Zone (Portugal)

 

There Is No Reason To Give Additional Easing Portugal

Monday, May 27, 2013

 

Troika not see any reason to give further easing the target of cutting the deficit in Portugal, Diario Economico reported. Troika is a creditor institution Portugal consisting of the EU, IMF, ECB and an institution that provides references to the disbursement of bailout funds for troubled euro zone members such. However, the troika is still open to the possibility of revising the target if it appears a significant risk of the economic conditions and budgetary Portugal.

 

Last weekend, Prime Minister Pedro Passos Coelho said Portugal may need to loosen the government's budget deficit target for 2014. Troika has given easing to Portugal to slash the budget deficit target. In the scheme bailout, Portugal must reduce the budget deficit ratio of 6.4% of GDP in 2012 to 5.5% of GDP for this year and to 4% in 2014.

 

Meanwhile, the euro weakened thin record in the Asian session. EUR / USD is now trading 1.2922; was not so far away from Friday's closing level of 1.2927

[mynameisandhy]

News and Review of European Economic Zone

 

Eurogroup Ready to Give Extra-time for Portugal

Tuesday, May 28, 2013

 

Eurogroup back loosen its policy related recovery measures that countries heavily indebted. This time it was Portugal, which received the blessing of European colleagues to get an extension of time in order to achieve the deficit target set by the authorities.

 

Eurogroup head, Jeroen Dijsselbloem ensure it is pleased to give extra-time to Lisbon to meet deficit targets. "If additional time is needed due to the economic slowdown constrained Portugal, hence the reason it could be considered," he said after a meeting with Portuguese Finance Minister, Vitor Gaspar. However, the Eurogroup warned Portugal to always move in the corridors of the bailout scheme agreed.

 

Prime Minister Pedro Passos Coelho said last Friday his country took another year to meet deficit targets imposed European governments. Under the previous agreement, the state must cut its budget deficit to 5.5% of the total gross domestic product this year and 4% for the year 2014. As for the number Portugal deficit in 2012 reached 6.4% of the value of its national economy, or about two-fold above the EU limit of tolerance.

 

Dijsselbloem claims that Portugal has not filed a formal petition and Finance Minister Gaspar remained optimistic that the country is able to meet its deficit target appropriate initial scheme. But the second meeting was to discuss the possibility of extending the target time. "All depends on Portugal later, what they need," said the head of the Eurogroup. Portugal asked for a bailout fund 78 billion euros ($ 101 billion) to the EU and the International Monetary Fund in April 2011. Since then, the budget has loosened the target twice and the country is expected to exit from the period of national budget cuts or austerity measures in mid-2014. The euro exchange rate is currently observed in 1.29165 per dollar.

[mynameisandhy]

News and Review of European Economic Zone (France)

 

Noyer Urges Hollande To Cut Spending Levels

Tuesday, May 28, 2013

 

France should focus on spending cuts rather than tax increases, according to the governor of the Bank of France on Tuesday, French President François Hollande urged to consider trimming pensions and welfare. In his annual letter to the French President, Bank of France Governor Christian Noyer warned the French economy is facing severe challenges and will probably fail to grow this year, as in 2012.

 

"The goal now is growth economists. Was not just a temporary boost, which results from the high levels of public spending, but growth is strong and durable," said Noyer said. "Such growth can not just show up. Was needed changes in public policy." Tax burden has now reached the level of a "very high", according to Noyer.

 

Noyer said the government should see savings in sensitive areas such as reducing the number of civil servants in the long libertine, and limiting jobless claims for the high-income. "The level of welfare benefits accounted for approximately 30% of GDP and the cause of the French social deficits," Noyer said. Bank of France governor also said the government appears to no longer be able to avoid to increase the minimum retirement age or the age to balance pension system, which reached a record deficit of about 20 billion euros by 2020. Retirement benefits can also be reduced by the pension does not include in inflation, according to Noyer.

 

Noyer welcomed the success of the socialist president in addressing labor market problems of France. In January, the trade unions and employer agree to change labor legislation that removes a number of legal uncertainty related to dismissal and easier for companies to cut working hours and wages in hard times. Hollande has also introduced tax cuts workforce by 20 billion euros. But the Governor of the Bank of France urged Hollande to go further on both sides, reminded that France is one of the countries that spend a lot of money on labor policy, but still has one of the highest unemployment rates. "These reforms must continue because there is still room for improvement in many areas," Noyer said.

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Italian Business Confidence Jumps In May

Wednesday, May 29, 2013

 

Business confidence in Italy increased significantly in May, which managed to reverse the sharp fall in April when widespread political uncertainty.

 

Manufacturing confidence survey rose to 88.5 in May from 87.9 in April, according to Italian satistik agency, Istat, on Wednesday. Composite business confidence survey, which also take into account the sentiment in other sectors, also noted a sharp increase to 79.8 in May, from 74.9 last month. Be the largest such increase in the last 3 years.

 

Increasing trend, which is also seen in the construction sector, retail and services market have increased the chances that the Italian economy may be able to get out of recession by the end of this year. Italy has been caught up in a recession for 8 consecutive quarters.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Bank of Spain: Still Possible Contraction Continues In Q2

Wednesday, May 29, 2013

 

Contraction of the Spanish economy is likely to continue in the 2nd quarter of 2013, according to the statement of the Bank of Spain on Wednesday.

 

Early indications suggest the existence of a "new drop" in Spanish economic output in the second quarter of this year following an estimated decline of 0.5% in the first quarter of 2013, compared with the 4th quarter of 2012, Spain's central bank said.

 

The Spanish government has recently revised its GDP growth forecast a contraction this year to 1.3%, from the previous 0.5%, as the state unemployment rate jumped to a matador 27%.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Retail Sales Dropped in May

Wednesday, May 29, 2013

 

UK retail sales rate fell to its lowest level in more than a year in May as consumer finance continued depressed by rising prices and slowing wage growth, while retailers also reduced investment plans, data showed on Wednesday. Retail sales survey by the Confederation of British Industry fell to -11 in May. This is the deepest decline since January 2012 to reach -22 and compared to last April at -1.

 

"The growth of retail sales has weakened since the beginning of the year as people continue to feel depressed, with a salary level that can not follow the rising cost of living," said Barry Williams, head of Asda and chief merchandising CBI survey panel. The survey also showed retailers in the UK is more optimistic about sales in June with sales expected to increase to +10. (Xiang)

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

House prices in the UK Back Rises

Thursday, May 30, 2013

 

Housing prices in the UK rose again in May 2013, triggering anxiety about the house price bubble. The results of the report by the Nationwide Building Society revealed a few moments ago.

 

UK house price index rose 0.4% compared to the record in April and 1.1% higher than the same period the previous year. The ratio of the annual increase in May was the highest since November 2011. In April last, the house price index was flat with a 0.9% annual increase in the ratio.

 

Nationwide appropriate reports, it now means that the average price of residential homes in the UK amounted to 167,912 pounds ($ 253,803) or the highest since July 2011 (168 731 pounds). The survey results in line with business activity statements and housing loans prior to getting stoked concerns about a bubble in house prices in the country.

 

Funding for the purchase of homes in the UK scheme became easier, especially to companies and developers who want to borrow money to buy a house. This is then followed by housing loan guarantee program, which helps first-time buyers to get a new home using government guarantee. Exchange rate GBP / USD is currently perched at 1.5173.

[mynameisandhy]

News and Review of European Economic Zone

 

Euro Zone Economic Confidence Up In Central Recession

Thursday, May 30, 2013

 

Level of economic optimism in the euro zone rose in May, amplifies the signal that Europe began to rise from the recession that hit the euro zone. Index of executive and consumer sentiment rose to 89.4 from 88.6 in April, according to the European Commission in Brussels today. The data is consistent with economists' forecasts.

 

Economic contraction in the euro zone have urged the European Central Bank to try to minimize the damage by cutting rates bugna and find unconventional ways to channel funds to companies in need, particularly in southern Europe. ECB this month cut interest rates to a record low at 0.5%.

 

"Our policy provides breathing space for the market panic, which pushed the economy toward a position where high interest rates that would make the default be true," said ECB president Mario Draghi this month. "Today we see a signal of progress on financial conditions. The difference between government and corporate debt have narrowed quite a lot. "

[mynameisandhy]

News and Review of European Economic Zone

 

Merkel And Hollande Holds Discussion 1 Day in Paris

Thursday, May 30, 2013

 

German Chancellor Angela Merkel was heading for Paris on Thursday to discuss with President Francois Hollande which aims to bring new ideas to strengthen the management of the euro zone and encourage European industry sectors. The meeting was held a day after the European Union gave France for 2 years additional time to meet the target of cutting the deficit and as the Berlin are no longer voiced proposals for tightening the budget, which critics said was one factor that pushed Europe into recession.

 

While the Paris and Berlin still has not reached an agreement on whether the EU in the coming days to take the risk of a trade dispute with China by imposing new taxes on exports of solar panels, both sides insist that the relationship between the two countries the euro zone's largest economy well. "Our relationship is very normal and efficient," according to the French diplomatic source in Hollande's office. "We may start from different positions but we still work together," he added.

[mynameisandhy]

News and Review of European Economic Zone

 

Access Road Towards ECB Closed by Blockupy

Friday, May 31, 2013

 

Thousands of anti-capitalist demonstrators Blockupy close access to the European Central Bank in Frankfurt on Friday to protest against the way the ECB officials in dealing with the debt crisis ECB. Carried banners satire as "humanity before profit", protesters gathered in the rain to close roads including those leading Deutsche Bank headquarters in the financial district of the city.

 

Mass that reaches 2,500 people stopped by the police complete with helmets and riot control equipment along with Alsatian dogs. Trucks with water cannons and seems prepared to continue to monitor the helicopter from above. At least 20 protesters were holding signs with the slogan "War Starts Here." Police said some protesters had been throwing new action and there is some controversy over the barricade, but generally quite peaceful protests so far.

 

Blockupy movement in Europe was formed after the Occupy Wall Street movement in the year 2011. "The purpose of the blockade is to prevent the ECB can operate normally," said a spokesman Blockupy, Martin Sommer, adding that a number of people who have tried to come to come to work has been discharged by the demonstrators.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Print Helps Spanish Recession Trade Surplus

Friday, May 31, 2013

 

Spain managed to score its first trade surplus in history in March, according to central bank data showed on Friday, as a sharp decline in the import sector due to recession in beating slight increase in the export sector. The trade surplus reached a 1 billion euros (1.31 billion dollars) in March compared with a deficit of 2.7 billion euros a year ago, according to the data.

 

Export company became one of the bright spots in the economy is trying to recover from the destruction of the property sector last 5 years is pushing up the level of debt and unemployment. The decline in wage costs make goods more competitive Spanish. Export sector grew by 2.7% in March compared to a year ago, while the level of imports fell by 13% due to the falling level of domestic demand.

 

Economy minister Luis de Guindos said earlier this month that Spain will score first in the history of the trade surplus in March, saying it is a signal that Spain is still competitive. But one analyst on Friday said that the trade surplus is triggered by the drop in import sector can not last long. "A trade surplus is usually a good thing, which means that Spain has lowered the level of dependence. However if surplus caused by the drop in the level of imports, this means that Spain should remain in recession in order to maintain it," said James Howat, an analyst at Capital Economics. This helps increase the trade surplus current account balance belongs to Spain to 1.4 billion euros, up from a deficit of 3.2 billion euros last year.