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The Spaniards are richer than the Italians... but only according to the IMF

Spain never surpassed Italy in GDP per capita as Zapatero announced in 2007. Now it does but only according to the statistics of the Fund, not those of Eurostat

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The Spaniards are richer than the Italians... but only according to the IMF

Spain has surpassed Italy for first time in GDP per capita measured by purchasing power, according to calculations provided this Thursday by International Monetary Fund (IMF). According to se figures, Spaniards obtained in 2017 a per capita GDP of 38,255 dollars, compared to 38,140 dollars of Italians.

This is one more evidence of divergent ways in which both economies have taken over last few years. Spain chains three consecutive years of growths above 3%, and has restored levels lost with crisis. According to IMF's predictions, in 2018 it will also advance to New Zealand to stand at 34 position of a ranking led by Qatar, Macao and Luxembourg. On contrary, Italy has not yet been able to recover from fall caused by Great Recession. Almost eight years after onset of euro crisis, Brussels still calls on Rome for reforms that do not occur.

That said, figures of Eurostat, European Statistical Agency, do not collect same reality that Fund projects. Neir in GDP per capita, nor in per capita GDP adjusted according to purchasing capacity. This last indicator tries to eliminate distortions that cause price variations from one country to anor.

In GDP per capita, Spain is located at 24,500 euros per inhabitant compared to 26,300 of Italy with data of 2017. In GDP per capita for purchasing capacity, Spaniards register in 2016 a 92% compared to base 100 that is average of European Union, compared to 97% of Italians and 106% of average of euro zone. The Germans reach 123%, and Frenchmen 104%. I mean, it's still a few years to catch Ltalians. And even more to get into levels of head of Europe.

More information
  • GDP growth slows in last quarter to 0.7%
  • Companies devote less to salaries and more to dividend than before crisis
  • Nine communities have not yet recovered pre-crisis GDP

At end of 2007, President of government, José Luis Rodríguez Zapatero, already proclaimed life of Spain to Italy. According to data collected by Eurostat, Spaniards first advanced Italians in per capita GDP adjusted for purchasing power. Spain climbed to 105% of Community average, while Italy fell to 103%. At peak of real estate bubble lived in skin of Toro, Spanish economy beating to transalpine, stagnated since late nineties. Zapatero's executive used this fact to sell that finally had really converged with EU, after 21 years as a member.

However, shortly after Great Recession came to an invoice. And Spanish GDP figures were subsequently 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 scored 103% of Community average, four points below 107% of Italy.

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