Unemployment in Spain fell in December 2016 to one of its lowest levels in the past seven years. Inflation rose due to higher energy prices. International tourist numbers to Spain reached a new record in 2016 and tourist spending increased substantially. The IMF revised upward its growth projections for Spain's economy in 2017 and 2018. Unemployment in the Eurozone remained stable while inflation increased due to energy prices. The IMF predicts the global economy will continue growing in 2017 and 2018, led by emerging markets.

1. January 2017
O
SPAIN
Employment December 2016 (Ministry of
Employment and Social Security)
Registered unemployment was reduced by
86,849 persons with respect to November, for
a total of 3,702,974 unemployed persons, one of
the lowest levels of the past seven years. In
year-on-year terms, it dropped by 390,534
(-9.54%), the greatest drop since 1999 and a
descent of more than a million people over the
past four years (1,145,749).
In December there were 1,699,018 new
contracts (+6.5% year-on-year), of which
122,294 were permanent contracts (+13.38%).
The average Social Security affiliation was
17,849,055 persons, the best figure since
October of 2009, with 68,531 more people than
in the previous month and with 540,655 more
than a year earlier (+3.12%).
CPI December 2016 (INE)
Inflation rose for the fourth consecutive
month, by 1.6% annually (vs. 0.7 in November),
the highest rate since July of 2013 (1.8%),
principally because of the prices of fuels and
energy products.
Public Administration debt November 2016
(Bank of Spain)
The total debt of the Public Administrations
dropped for the second consecutive month, by
4.7 billion with respect to October (-0.4%),
reaching 1.098 trillion (99% of GDP, as against
the objective for 2016 of 99.4%), but still near
historic highs.
In spite of this reduction, in year-on-year
terms the public debt surpassed that of
November 2015 (1.07 trillion euros) by 2.4%
(26.3 billion).
Tourist sector 2016 (Ministry of Energy,
Tourism and the Digital Agenda)
After seven years of consecutive growth, Spain
again set a new record for international
tourists, surpassing 75 million for the first time
(75.3 million), or 7.2 million more than in 2015
(+9.9%).
Total tourist spending also increased, to 77
billion euros (+8.3% year-on-year), almost 10
billion more than in 2015, and 25 billion above
2011.
Average spending per tourist rose to 1,023
euros (+3.75%), while spending per visitor per
day was 138 euros (+6.5%).
The main countries sending tourists to Spain
between January and November of 2016 were
the UK, with 22.5% of the total, France
(14.3%) and Germany (14.3%). In spite of
Brexit, the number of British tourists in Spain
grew 12.3% with respect to the previous year.
The tourist sector, which now has 2.5 million
employees, added 130,000 worker during the
past year (+6%).
-1,3
0,1
-0,9
0
-1,1
0,7
1,6
0,2
0,8 1 0,9 1,1
0,6 0,8
1
-2
-1
0
1
2
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
CPI
% annual change
General Underlying
Source:INE, January 2017
2,3
5,6
7
5,1
9,9
57.464
60.675
64.939
68.215
75.300
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
0
2
4
6
8
10
12
2012 2013 2014 2015 2016
Tourist arrivals
International tourists (thousands)
Annual change (%)
▲ annual Tourists
Source:Ministryof Energy, Tourism and Digital Agenda, 2017
TOP 10 tourist source countries (January-November 2016)
Tourists % over total
% annual
change
United Kingdom 16,961.140 22.5 12.3
France 10,767.308 14.3 7.1
Germany 10,734.120 14.3 6.1
Italy 3,733.716 5.0 5.6
Netherlands 3,232.656 4.3 9.4
Belgium 2,207.605 2.9 2.7
USA 1,884.299 2.5 6.2
Portugal 1,872.672 2.5 15.8
Ireland 1,742.615 2.3 22.7
Russia 962.644 1.3 1.8
Source: Ministry of Energy, Tourism and Digital Agenda, 2017
Así está…
The economy

2. ‘Así está…The economy’, 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
EUROPE
Unemployment November 2016 (Eurostat)
As in the previous month, unemployment in
the Eurozone was stable at 9.8%, the lowest
rate since July of 2009. In the case of the EU28,
it was 8.3% (vs. 8.4% in October).
CPI December 2016 (Eurostat)
In December the Eurozone also saw increased
inflation (1.1% annual, vs. 0.6% in November),
basically because of a rise in energy prices
(+2.5% vs. -1.1% in November).
INTERNATIONAL
IMF Updating of projections for the world
economy (IMF)
The IMF predicts an upturn in global
economic activity for 2017 and 2018, especially
in emerging and developing markets, which
will continueto be the engine of world growth.
The advanced economies will consolidate their
economic recovery. In the case of Spain, the
IMF has revised upwards its predictions for
growth for 2017 and 2018 by 1 and 2 decimal
points, respectively, to 2.3% in 2017 and 2.1%
in 2018.
Among the negative risks for world activity:
 A turn toward isolationist and
protectionist policies.
 A deterioration of world financial
conditions along with weaknesses in the
balance sheets of some Eurozone
countries and some emerging economies.
 A resurgence of geopolitical tensions.
 A slowdown in China.
Mexican economy report (OECD)
The recent Economic Survey of Mexico
identifies some external risks that could put a
brake on its growth in 2017 and 2018:
 A slowdown in world trade.
 Depreciation of the peso because of
expectations of a restrictive monetary po-
licy in the US.
 Uncertainty caused by the new Trump
administration.
The report argues that Mexico can achieve
greater growth if it redirects public spending
toward infrastructures, education, health, and
the reduction of poverty, which will demand
greater reforms.
8.3
9.8
19.2
0
5
10
15
20
25
CzechRep.
Germany
Hungary(Oct)
Malta
UK(Sep)
Netherlands
Romania
Austria
Poland
Luxembourg
Denmark
Sweden
Bulgaria
Ireland
Estonia(Oct)
Belgium
Slovenia
Lithuania
EU28
Finland
Slovakia
France
Latvia
Eurozone
Portugal
Croatia
Italy
Cyprus
SPAIN
Greece(Sep)
UnemploymentEU28
% over labour force
Source:Eurostat,2017
0,2 0,2 0,4 0,5 0,6
1,1
-7,5
-6,5
-5,5
-4,5
-3,5
-2,5
-1,5
-0,5
0,5
1,5
2,5
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
CPI Eurozone
% annual change
Underlying CPI
Energy
General CPI
Source:Eurostat,2017
Latest projections (January update)
% annual change
2015 2016 2017 2018 2017 2018
World output 3.2 3.1 3.4 3.6 0 0
Advanced economies 2.1 1.6 1.9 2 0.1 0.2
USA 2.6 1.6 2.3 2.5 0.1 0.4
Eurozone 2 1.7 1.6 1.6 0.1 0
Germany 1.5 1.7 1.5 1.5 0.1 0.1
France 1.3 1.3 1.3 1.6 0 0
Italy 0.7 0.9 0.7 0.8 -0.2 -0.3
Spain 3.2 3.2 2.3 2.1 0.1 0.2
Japan 1.2 0.9 0.8 0.5 0.2 0
United Kingdom 2.2 2 1.5 1.4 0.4 -0.3
Emerging and developing ecs. 4.1 4.1 4.5 4.8 -0.1 0
Russia -3.7 -0.6 1.1 1.2 0 0
China 6.9 6.7 6.5 6 0.3 0
India 7.6 6.6 7.2 7.7 -0.4 0
ASEAN* 4.8 4.8 4.9 5.2 -0.2 0
Brazil -3.8 -3.5 0.2 1.5 -0.3 0
Mexico 2.6 2.2 1.7 2 -0.6 -0.6
Nigeria 2.7 -1.5 0.8 2.3 0.2 0.7
South Africa 1.3 0.3 0.8 1.6 0 0
* Philippines, Indonesia, Malaysia, Thailand and Vietnam
Source: IMF, 2017
Estimate Projections vs. Oct. 2016