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Spanish firms to benefit from tame inflation as German recession looms -minister

Published 18/09/2023, 13:01
© Reuters. FILE PHOTO: A man works at the Marder APC factory line at the Rheinmetall production plant of military equipment for the Bundeswehr, police and Ukraine, in Kassel, Germany, July 25, 2023. REUTERS/Kai Pfaffenbach/File Photo
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MADRID (Reuters) -Spanish companies stand to gain market share as they benefit from lower inflation even as Europe's economic powerhouse Germany faces a potential recession, Spain's Economy Minister Nadia Calviño said on Monday.

Asked about the likelihood of a German recession this quarter as indicated by Germany's central bank in its monthly economic report, she told La Sexta television channel that while the German and Italian economies were slowing down, Spain was "fortunately continuing to grow with increasingly lower inflation".

"This is benefiting Spanish companies, as they gain market share because they are more competitive," she said.

© Reuters. FILE PHOTO: A man works at the Marder APC factory line at the Rheinmetall production plant of military equipment for the Bundeswehr, police and Ukraine, in Kassel, Germany, July 25, 2023. REUTERS/Kai Pfaffenbach/File Photo

The economy ministry later clarified that Calvino "in no way linked the higher growth of the Spanish economy or the competitiveness of companies to the slowdown in the German economy", and was only referring to the beneficial effect of low inflation.

Germany's central bank said the euro zone's largest economy was likely to shrink this quarter as industry was in recession and private consumption was adding little to growth.

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