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Spain did not succeed in 2017 surpassing Italy's wealth

Eurostat figures note that the Spanish economy is improving somewhat with respect to the transalpine but continues below the EU average

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Spain did not succeed in 2017 surpassing Italy's wealth

It's an official fact. In 2017, Spain did not surpass Italy in wealth generated by inhabitant. This is: In per capita gross domestic product adjusted according to purchasing power. The International Monetary Fund calculated in April that last year Spanish economy would overtake transalpine. However, that is not what appears in official figures published on Tuesday by Eurostat. According to European Statistical Agency, Spain has maintained in 2017 its per capita GDP in 92% compared to 100% of EU average. And Italy has dropped one point, from 97% to 96%. That is to say, although Italians are losing positions, y are still richer than Spaniards.

If one examines only consumption per person in euros corrected by capacity of purchase, Spaniards recorded in 2017 about 18,400 euros per head compared to 20,100 euros of Italians. In GDP per person, Spain added 27,700 euros, below 28,700 that is recorded Italy.

Spain chains three consecutive years of activity growths above 3%, and has already restored GDP levels lost with crisis. In midst of Great Recession, back in 2011 and 2012, Spanish economy came to be 11 points below Italian. But now difference has been shortened to just 4 points. Spain has dealt with reforms, and with great sacrifices it has adjusted employment and salaries. He's growing up right now. It is even used as an example for Europe of policies sponsored by Brussels and Berlin. On contrary, according to dominant rhetoric in EU, Italy resists. It has procrastinado with reforms and has its economy mired in sluggishness. Despite fact that employment figures are better than Spain, unemployment numbers are not so disparate once population that is not active is taken into account, that is, one that does not participate in labour market. There, Italy has so many inactives that actually adding up unemployed throws a percentage of people out of employment similar to Spanish.

At end of 2007, n President of government, José Luis Rodríguez Zapatero, already proclaimed life of Spain to Italy. According to data that this time offered Eurostat, Spaniards surpassed for first time Italians in GDP per capita corrected by purchasing power. Spain climbed to 105% of Community average, while Italy fell to 103%. At peak of housing bubble, Spanish economy beating to transalpine, stagnant since late nineties. A Bombo and saucer, executive of Zapatero gave publicity to this fact. The intention was to sell that finally had really converged with EU after 21 years as a member.

However, shortly after crisis passed bill. And Spanish figures were n corrected with downward force. Once se adjustments were applied on statistics of 2006 and 2007, Spain never achieved milestone of surpassing Italy, as is now reflected in Eurostat numbers. By time it was closer, back in 2007, Spain counteded 103% of Community average, four points below 107% of Italy. Just same distance as now.

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In fact, Spaniards only managed to be in average of EU-28 between 2005 and 2009. At close of 2017, Spain is quite far from convergence: 8 points. And that has been direct consequence of a much more severe recession.

On or hand, Spain has never reached average of euro zone. The Spanish are currently in GDP per capita at about 14 points in euro area average. Compared to group with which adventure of single currency began, Spain now has a 7-point deficit. When he joined euro, distance was 10. Almost three decades later, it seems that convergence has not improved as expected. And it's not about crisis. In 2007 gap was 9 points.


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