Josй Ignaceo Jimйnez Rodriguez,
Marketing Manager, Comania Expaсola de Credito a la Exportacion SA (CESCE)
Industry Environment
In 2000 the Spanish economy grew by 4.1% in real terms. This was one of the highest growth rates achieved in the European Union and represents a significant gain in per capita income.
However, a sharp increase in domestic demand generated inflationary pressures and a certain overheating of the economy. The rise in oil prices, which represented some two billion pesetas for the balance of payments, also contributed to the increase in inflation. This rate is almost two percentage points above the average for the European Union as a whole.
It should be noted that there was a major overhaul of public sector accounts during this period after a reduced deficit equivalent to 0.3% of GDP was recorded. The authorities had expected the deficit to be eradicated by 2001.
