EUR Weakness Won't Improve The Growth In Spain - Nomura
Despite the 15% decline in the EUR aginst the USD over the past year, its impact on the growth of the Spanish economy is likely to be very limited, said Nomura in a note. Nomure outlined two main reasons behind that call:
First, a significant part of Spain's trade is with other eurozone trading partners (against which the exchange rate is fixed) the trade-weighted exchange rate of Spain is much less flexible than EUR/USD.
Second, the Spanish economy is not particularly open and Hence, a given impact on the trade-weighted exchange rate has less impact on overall GDP in Spain than in some other eurozone economies.
"From this perspective, the impact on growth of euro weakness could actually be smaller in Spain than in other countries," Nomura concluded