The Association of Cement Manufacturers of Spain, Oficemen, has warned that the alarming loss of capital in infrastructure in the country over the last three years and has now reached €10 000 million. The strike in public works has meant that the country is reducing its first stock of public capital, an economic indicator that had progressed since 1960.
The stock of public capital is calculated from the accumulation of past investments, discounting the loss of efficiency due to its depreciation. In previous periods of crisis, such as those experienced in the late seventies and early nineties, the public capital growth slowed, but had never witnessed a reduction of capital. According to the Department of Studies of Oficemen, the public are investing half of what is necessary to maintain public capital.
As the president of Oficemen, Jaime Ruiz de Haro, said "this situation can have serious consequences for the whole of our society because it puts productivity, growth and, ultimately, the future of Spain in peril. No doubt, if this trend does not change, we will bequeath to future generations a more impoverished and less active country.”
Cement consumption fell by 2.3% in the first half of the year to 5 525 720 t, 132 834 less than in the same period of 2015. June registered a fall of 0.9%, to 1 048 116 t.
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcement.com/europe-cis/12072016/spanish-cement-consumption-falls-505/