.Monthly summary of the Spanish and international company

1. www.circulodeempresarios.org
Non-performing loans
Since reaching maximum levels in Janu-
ary of 2014, the amount of dubious credit
has dropped by 42% to 115.017 billion eu-
ros. At present the non-performing loan
is 9.1%.
Indebtedness (Feb-17)
The debt of non-financial corporations
has dropped 30% since 2009, to 906.439
billion euros (81.38% of GDP).
Total indebtedness of the Spanish
economy climbed to 245% of GDP. It is
24 percentage points below the level of
2014 (because of the reduction in private
debt) but is 27 points higher than the
levels of February 2007.
MARF
In 2016 the total volume of new issues on
the Alternative Fixed-Income Market
was 2.28 billion euros, some 174%
greater than in 2015 and 4.7 times more
than the end of 2013.
Likewise, since its creation the total
amount financed for companies was
3.650 billion euros.
Company consensus
According to the economic consensus of
PwC, 78.1% of the businessmen and
managers surveyed think Spain’s current
economic situation is positive.
Their optimism is based on increased
employment and family consumption,
along with greater possibilities for overseas
markets.
By sectors, they identify tourism and the
automobile manufacturing as the possible
engines for growth of the Spanish economy.
13,6
12,5
10,1
9,1 9,1
2013 2014 2015 2016 feb-17
Non-performing loan rate
%
Source: Círculo de Empresariosbased on Bank of Spain, 2017
489
832
2,280
0
500
1.000
1.500
2.000
2.500
2014 2015 2016
MARF issue
Million €
Source: Círculo de Empresariosbased on BME, 2017
0
20
40
60
80
Businessmen and managers opinion on...
1Q-2016 1Q-2017
Así está…
The company April-May 2017
Spanish debt composition
% GDP
Feb 2007 Feb 2017
Source: Círculo de Empresarios based on Bank of Spain, 2017
Source: Círculo de Empresarios based on PwC, 2017

2. ‘Así está…The company’, a publication of the Círculo de Empresarios produced by its Department of the Economy, contains information and opinion from reliable sources.
However the Círculo de Empresarios does not guarantee its accuracy and does not take responsibility for any errors or omissions. This document is merely informative. As a
result, the Círculo de Empresarios is not responsible for any uses that may be made of the publication. The opinions and estimates of the Department can be modified without
any warning.
www.circulodeempresarios.org
Financial markets
Future fiscal and regulatory policy in the
United States can significantly increase
potential growth.
The initial impact has reached markets in
the form of less volatility and greater cost in
those financial assets that potentially will
be benefitted by Trump’s new economic
policy.
Nevertheless, this effect has been losing
strength in recent weeks due to the Trump’s
difficulty in reaching an agreement with the
US Congress.
Productivity
According to the IMF, the elimination of
regulatory obstacles that limit the activ-
ity of the most productive companies
would increase average growth of real
GDP by 1 percentage point over the
next 20 years. In the case of developing
economies and emerging countries, 25%
of that potential gain could be achieved
by redesigning the tax system.
Robots
The International Federation of
Robotics (IFR) estimates that in 2016
China installed more than 90,000
robots, or 1/3 of its total, an increase of
30% over the previous year. Its rate of
units per 10,000 workers in the
manufacturing industry is now 49 as
against other countries like South Korea
(531), Germany (301) or Spain (150).
Elections in France
Since the victory of Emmanuel Macron
in the first round of the presidential elec-
tions, France’s risk premium has
dropped 20 points and the euro has
appreciated 2% to 1.09 dollar.
Performance of US equity industry subsectors
(% since elections)
Banks: +38%
Oil exploration:
+13%
Engineering: +21
Materials: +13%
Equipment: +48%
Internet: +13%
Health-care: +18%
Pharmaceuticals: +10%
Retail: +9%
Logistics: +12%
Infrastructure
spending
Deregulation:
Corporate tax
cuts or
repatriation
Adverse trade
policies
0
0,2
0,4
0,6
0,8
1
1,2
1,4
1,6
Advanced Emerging Developing
Impact of higher productivity on real GDP
growth
Percentage points
Source: Círculo de Empresariosbased on IMF,2017
531
398
305 301
212 190
158 176 169 160 150
71 49
0
100
200
300
400
500
600
Number of robots per 10,000 employees in the
manufacturing industry, 2015
Source: Círculo de Empresariosbased on IFR, 2016
Global avarage: 68
1,04
1,05
1,06
1,07
1,08
1,09
1,1
Jan-17 Jan-17 Feb-17 Mar-17 Mar-17 Apr-17 May-17
Euro/dollar
Source: Círculo de Empresariosbased on Bloomberg, 2017
Electionsin France
Source: IMF, JP Morgan, Bloomberg, Haver Analytics, 2017