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null What Are the Implications of Spain's Rising Wages?

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What Are the Implications of Spain's Rising Wages?
18 Jun 2019
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Clock 15 mins.
CATEGORIES: AER Premium AER Personal Spain Macro Spain Consumption
ANALYSTS:
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Ignacio de la Torre
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Leopoldo Torralba
Wages are, together with job creation, the key inputs for successfully projecting recurrent GDP growth. They affect essential parameters such as consumption or demand for housing, which also have an impact on other relevant factors, such as investment in capital goods. Furthermore, they have an effect on public deficit, since increases in GDP translate into higher tax revenues and lower deficits. Finally, wages have an influence on the country's competitiveness (via inflation) and as such, on foreign demand, which is also a key driver of GDP performance. In short, we believe that job creation and wages are variables that must be very closely monitored in order to correctly anticipate the evolution of both macroeconomics and the real estate sector. They have a crucial influence on all economic players: companies, individuals, the public and foreign sectors, real estate, inflation... Arcano Economic Research has been supporting, for more than a year, the thesis that wages in Spain would accelerate above the consensus. How are they performing at present and what are their specific implications for economic players? The note 'What are the implications of Spain’s rising wages?' explains this in detail, adjusting the parameters to identify actual underlying trends.

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