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Competitiveness Trend Index

Strength of euro moderates price competitiveness of Spanish economy

Tuesday 7 August 2018

The appreciation of the Euro in the second quarter of the year moderated the price competitiveness of the Spanish economy vis-à-vis the EU, according to the Competitiveness Trend Index (Spanish acronym: ITC) calculated with the Consumer Price Index.

In the second quarter of this year, the ITC rose by 0.3%, a change in trend after two quarters of heightened competitiveness vis-à-vis the EU. This loss of competitiveness is almost wholly down to the appreciation of the Euro against the currencies of those EU countries that do not belong to the Eurozone (such as the Swedish Krona, the Pound Sterling and the Polish Zloty).

If we compare this with the OECD, the ITC rose by 3.2% despite the improvement in Spanish competitiveness thanks to more moderate trend in prices in Spain than in the OECD, which was only able to slightly offset the noticeable appreciation of the Euro against the main currencies in this region (such as the Swiss Franc, the US Dollar and, to a lesser extent, the Japanese Yen and the Korean Won).

The ITC shows a similar trend in relation to the BRICS countries (Brazil, Russia, India, China and South Africa), which rose by 3.8% year-on-year in the second quarter.

The complete report, with tables, can be consulted by clicking on the following link.

Non official translation