15 nov 2016
Economic outlook

The economy points to additional growth in the last part of the year

The Spanish economy continues to show positive momentum and the growth for the year as a whole could be around 3.2%, similar or even higher than the growth rate in 2015, according to the Economic Outlook Report prepared by CEOE’s Research Studies Team (Department of Economic and European Affairs), which states that information for the last quarter, although still scarce, seems to point to an additional upturn of the economy in the final stretch of the year.

Economic outlook
Economic outlook — ©CEOE

In fact, according to the report, the European Commission estimates in its Autumn Forecast a GDP growth of 3.2% for Spain this year, although it maintains the estimation of a slowdown for 2017 (2.3%) and 2018 (2.1%).

In its report, CEOE says that, although some of the factors that drove the economy’s growth this past year are starting to deplete, the good behaviour of the labour market, household consumption and a strong foreign market are supporting growth.

Meanwhile, the report highlights that one of the priority issues of the new Government on economic policy is to pass the Draft Budget for 2017, which will reflect the intended fiscal and budgetary policy in order to meet the public deficit goal recommended by Brussels (-3.1 % of GDP). In the Confederation’s opinion, complying with the public deficit’s target in 2016 (-4.6% of GDP) seems feasible.

On the international front, CEOE underlines an increase in existing uncertainty, since the Brexit is joined by the foreseeable change in the economic and foreign policy of the new US Government.  Furthermore, forecasts from the European Commission on global growth for 2016 are revised slightly downwards, due to the weakness in some developed economies in the first half of the year, while estimations for an improvement in 2017, extending over to 2018, remain unchanged.

 

Related reports