Exercise $2$

Based on the information in Table $3,$ analyse the evolution of the external competitiveness of the Spanish economy vis$--$vis the groups of countries considered in the period $2000-2008$ and in the period $2000-2019.$ Explain your answer and comment on the relevance of the different components of the Real Effective Exchange Rate.

Table $3.$ Real effective exchange rate of Spain vis$--$vis Eurozone and newly industrialised Asian countries $($Base $1999$ Q$1=100)$

Based on Consumer price index

$($CPI$)$

$\backslash$begin$\{$tabular$\}\{$cccccc$\}$

$\backslash$hline & $\backslash$multicolumn$\{2\}\{$c$\}\{$ Eurozone $\}$ & & $\backslash$multicolumn$\{2\}\{$c$\}\{$ Vis$--$vis newly industrialized Asian countries $\}\backslash \backslash$

$\backslash$cline $\{6-7\}\backslash$cline $\{5-6\}$ & Total & & Total & $\backslash$begin$\{$tabular$\}\{$c$\}$

Nominal $\backslash \backslash$

Component

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Price $\backslash \backslash$

component

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline $2000$ & $101\mathrm{.}7$ & & $85\mathrm{.}5$ & $82\mathrm{.}0$ & $104\mathrm{.}3\backslash \backslash$

$2008$ & $109\mathrm{.}7$ & & $127\mathrm{.}6$ & $116\mathrm{.}6$ & $109\mathrm{.}4\backslash \backslash$

$2019$ & $107\mathrm{.}3$ & & $86\mathrm{.}0$ & $95\mathrm{.}4$ & $90\mathrm{.}2\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$