18 ene 2017
Economic outlook

Positive balance for the Spanish economy in 2016 in terms of growth and employment

Economic outlook - January 2017

New issue of "Economic outlook", document prepared by CEOE's Economic Research Unit about the recent developments in international and spanish economies.

Economic outlook - January 2017
Economic outlook - January 2017 — ©CEOE

Key points:

The Federal Reserve raised interest rates in the United States by a quarter of a point, up to the 0.5% to 0.75% range.

Oil prices increased substantially in December, following the agreement between the OPEC countries and other producers to cut production by 1.8 million barrels a day.

Positive balance for the Spanish economy in 2016 in terms of growth and employment and in the adjustment of economic imbalances. GDP, at a quarterly rate of 0.7% in the fourth quarter, could close 2016 with an average growth of 3.2% for the second consecutive year. Employment, measured in terms of the number of workers registered with the Social Security, increased by 3.0% in 2016. Information up to September for the Public Administration points to compliance with the public deficit objective in 2016 (-4.6% of GDP) being feasible. The positive trade balance is expected to widen in 2016, exceeding 2% of GDP.

Inflation, with an average rate of -0,2% in 2016, registered a significant rebound in December (1.5%) and will continue to rise in the upcoming months.

The amendment of the Corporate Income Tax in December may affect business investment, job creation and competitiveness.

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