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CONSOLIDATED FINANCIAL STATEMENTS AND CONSOLIDATED MANAGEMENT REPORT 2015
THE SPANISH ECONOMY IN 2015
Information on economic performance at the date of the preparation of these consolidated financial statements indicates
that during 2015, Spain was one of Europe’s fastest-growing economies, and the clear leader among large economies in
the zone, several of which were quite stagnant quarter after quarter.
This positive trend, which is estimated at 3.2% inter-annually during 2015 in GDP terms (practically double the average
in Europe), reflects the smooth road to economic recovery which began last year.
The global outlook, with definitive data for the year still not available, growth is forecasted at 3.1%, a figure which is nearly
identical to that of the Spanish economy, and which is quite indicative of its improvement during the year vs the other
countries. Based on the above, growth indicators for advanced economies predict a 1.9% growth for the year, while the
EU will only grow 1.6%.
The United States should grow around 2.4%, which is in line with 2014, and is rather disheartening, especially as regards
the less dramatic than expected improvement observed during the second half of the year.
Worth mentioning is the economic performance of emerging countries which have dropped 6 decimal points’ growth
during the year; China is a case apart, due to the size of its market, its significance to the global economy, idiosyncrasies,
and its terribly opaque financial markets, while both Russia and Latin America (notably Brazil) are entering negative
growth territory as a result of the combination of a drop in demand and raw materials, and the unprecedented
plummeting price of oil, which without a doubt represents one of the most relevant matters during 2015, whose
consequences on the overall trend of world economy still remains to be seen.
In effect, the past year was marked by the uncertainties surrounding the Chinese market, which finally led to a small
cataclysm in the markets and volatility worldwide. The above is indicative of the beginning of a change in China’s
development model, which was established on the pillars of investment and infrastructures, and now is more dependent
on consumption.
Its enormous economy lacking in transparency has unleashed a generalized lack of confidence in the markets, and at
the same time has increased volatility and aversion to risk for investors, which was reflected in the generalized drop in
stock markets worldwide.
The steep decline in oil prices to levels unheard of over the past 13 years has to a greater or lesser extent fostered and
continues to foster social tension in countries whose tax income is dependent on oil to maintain welfare benefits as
well as other basic services.
Geopolitical tensions are on the rise in specific areas of the planet (such as Syria, Iraq, Iran, Saudi Arabia, North Korea,
etc., which are undoubtedly correlated to the above economic factors), while the current US presidential campaign
features a much wider spread in political positioning than in prior election years.The above global economic backdrop
is becoming increasingly complex.
As a result of this environment, the year got off to a start with generalized drops in stock exchanges, and steep
corrections in nearly every market due to the generalized spiral of securities sales by investors wishing to unburden
themselves due to fears that the prevailing risk factors might finally evolve into a new recession.This process continues
open as of today’s date.
MANAGEMENT REPORT FORTHEYEAR ENDED
DECEMBER 31, 2015
(EXPRESSED INTHOUSAND OF EUROS)