ACCIONA, S.A. AND SUBSIDIARIES (Consolidated Group ...

Therefore, domestic demand is expected to fall back heavily, albeit partially offset by a
high trade surplus. The drop in domestic demand is the result of a sharp fall in public
and private sector spending, in a context in which household spending will be restricted
by the impact of fiscal consolidation on disposable income and by higher
unemployment. In this scenario, household spending is expected to decrease, despite the
fact that household saving rates continue to fall. Residential investment will foreseeably
continue to drop in 2012 and 2013, although at a slower rate than in recent years as the
most critical period has been overcome. Demand weakness, downgraded economic
prospects and tough financial conditions will lead to additional reductions in privatesector
investment in productive assets in the next two years.
As regards foreign trade, growth in exports of goods and services is expected to slow in
2012, as a result of the worsening of the outlook for the international markets. However,
as in the last two years, net exports will foreseeably increase, thanks to the improvement
in the competitiveness of the Spanish economy since the beginning of the crisis and the
greater emphasis placed on exports to the detriment of the domestic market, in a context
of the greater strength of the foreign markets. This, combined with the fall in imports
predicted for most of 2012 as a result of the drop in end demand, will bolster the
balance of trade, which is expected to remain at the same level as in 2011.
Annual Corporate Governance Report
The full text of the Annual Corporate Governance Report is available on the CNMV
website (www.cnm.es) and on the Company's website (www.acciona.es).
Also, the Annual Corporate Governance Report will be reported as a Significant Event
Communication to the CNMV.
- Page 175-