24 ene 2019
Economic outlook

THE GOVERNMENT REVISED DOWN ITS GDP GROWTH FORECAST FOR 2019, BUT THE SPANISH ECONOMY CONTINUES TO GROW AT A GOOD PACE

CEOE Economic outlook - January 2019:

- State Budget 2019: expansionary in the social field, higher contributions to the Social Security and lower growth

- The economy is growing at the same rate due to strong consumption and investment

The Spanish economy continues to grow at a good pace. After three consecutive quarters growing at rates of 0.6%, and according to the information available, over the last stretch of 2018 the activity may have followed a similar trend. This dynamism has continued based on the strength of private consumption and investment. On the one hand, the increase in household spending has been supported by the favourable progress in the creation of employment and the increase in wages.

Economic outlook
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The Government presented the General State Budget for 2019, in which the public deficit objective is set at -1.3% of GDP.

The expenditure policy is expansionary in the social field, which means that the improvement in the budget balance is based on a notable increase in tax revenues, especially those that fall on the business sector.

The government revised down by one tenth its GDP growth forecast for 2019, to set it at 2.2%. The number of workers registered with the Social Security closes 2018 with more than 19 million contributors, the highest figure since December 2007.

In 2018, the number of people registered with the Social Security increased by an annual average of 3.1%, five tenths less than in 2017.

Inflation slows down rapidly and closes the year at 1.2% due to the decrease in energy prices. The average for the year stands at 1.7%.

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