The Spanish economy improves its price competitiveness in the first quarter of 2019

Competitiveness Trend Index

The trend of improved competitiveness registered in recent quarters is consolidated.

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According to the data made public, the Competitiveness Trend Index (CTI) calculated with the Consumer Price Index (CPI), the price competitiveness of the Spanish economy improved in the first quarter of 2019 compared to the countries OECD and those of the Euro zone.

 

El ITC, whose reductions reflect gains in competitiveness, decreased 0,3% compared to the EU-28 in the first quarter of 2019, thus adding to the change in trend that began last quarter compared to the OECD. The gain in competitiveness compared to EU-28 is due to the decrease in the price index, which was greater than the slight appreciation of the euro against the currencies of those community countries that do not belong to the Euro zone. 

 

Front of OECD, ITC fell by 2,4% due to a price evolution in Spain more moderate than in OECD together with the depreciation of the euro against the main currencies of this area. 

 

 

 

The gain in competitiveness compared to the EU-28 is due to the decrease in the price index, which was greater than the slight appreciation of the euro against the currencies of those community countries that do not belong to the euro zone.

 

 

 

In relation to countries BRICS, ITC decreased 1,6% year-on-year in the first quarter. The gain in competitiveness compared to this area was due to the reduction in the price index (-1,7%), while the exchange rate index increased slightly (0,1%). 

 

The latest ITC data calculated with other price or cost indices refer to the fourth quarter of 2018 and confirm the competitiveness gains. 

Thus, with its renewed presence, the ITC measured with Unit Value Indices (IVUs) improved compared to the entire EU-28 (-1,2%) and compared to the countries of the OECD (-0,8%). In both cases due to the reduction in the relative price index. For his part, the ITC calculated with Unit Labor Costs (ULCs) Front of EU-28 decreased by 1,4% in the fourth quarter of 2018, consolidating the trend of improved competitiveness registered in recent quarters. The cause was the behavior of the unit labor cost index, which decreased by 1,7%, compared to the exchange rate index, which rose by 0,3%.