25 oct 2016
Economic outlook october 2016

Spanish economy: CEOE analyzes the recent evolution

The Economic Research Unit of CEOE analyzes the recent evolution of the Spanish economy and its main indicators.

Economic outlook - October 2016
Economic outlook - October 2016 — ©CEOE

Key points:

  • The IMF maintains growth forecasts for the global economy and lowers those for trade, while it warns about protectionism.
  • The price of Brent crude continued to rise in September in light of a potential agreement between the OPEC and other oil producers to stabilize the market.
  • The slowdown in investment in capital goods and civil works could explain the slight slowdown in GDP expected for the third quarter (0.7% quarterly rate).
  • Job creation showed a moderate increase in the third quarter, with a 3.0% yoy upward.
  • Inflation returned to positive rates in September (0.2% year on year) and the start of a moderate upward trend is expected, possibly reaching 1% year on year by December.
  • Companies bear the greatest burden of the effort to reduce the public deficit in 2016 due to the rise in the minimum rate to 23% (25% for banks and oil companies) in corporate income tax payments on account for companies with a turnover above €10 million. This measure may be extended until the target deficit is met.

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