19 jul 2017
Economic Outlook

Increase in the growth forecast for the Spanish economy

CEOE highlights Government’s upward revision of the GDP

The growth outlook for the Spanish economy continues its upward trend, according to CEOE’s Economic Outlook, prepared by the Research team under the Organization’s Department of Economic and European Affairs.  In it, they note the strong momentum of the economy in the second quarter of the year, which could post a higher growth rate than the first quarter.

Economic growth
Economic growth — ©Dreamstime

With regards to the growth forecast, the government has reviewed upward its GDP estimation.  Specifically, up to 3% in 2017 and 2.6% in 2018, “a sensible and feasible forecast”, says the business organization. In turn, analysts from FUNCAS forecast a 3.1% for this year. CEOE’s GDP estimate is higher (3.2% in 2017 and 2.7% in 2018).

In their opinion, this improvement is mostly due to the positive behaviour of exports. As outlined in the Economic Outlook, the foreign sector will continue to contribute positively to GDP and there will still be a current account surplus, “an indication that the new growth pattern of the Spanish economy is consolidating”.  Also, domestic demand will grow at a healthy pace, with the investment in capital goods being the component that will have the most positive behaviour. They also add that the Government´s forecast for 2019 and 2020 points towards a GDP growth of 2.5% in both years.