15 mar 2017
Economic outlook - March 2017

The Spanish economy grew at a higher pace than the average for its European partners in 2016

The CEOE’s Economic Research Unit of the Economic and European Affairs Department publish a new report about the Spanish recent economic evolution: “Economic Outlook – March 2017”.

Economic outlook - March 2017
Economic outlook - March 2017 — ©CEOE

The Spanish economy grew at a higher pace than the average for its European partners in 2016 (the GDP for the Euro Zone increased by 1.7%). Specifically, 2016 closed with an average GDP growth of 3.2%, the same as in 2015. The most outstanding trait in activity behaviour throughout 2016 was the significant slowdown in domestic demand, which went from a growth of 3.5% in the first quarter of the year to 2.2% in the fourth quarter.

Although the outlook is moderately optimistic, the European Commission1 has published its European Semester Winter Package, which includes Country Reports on the Member States. The Report on Spain provides a comprehensive review on the evolution of macroeconomic imbalances related to public finances, private indebtedness and unemployment. In this way, it continues to emphasize the need to correct the high level of public debt and net external debt, it insists on the low productivity increase, on the high probability for part of the unemployment to become structural and on the need to intensify the fiscal consolidation path and increase potential growth.

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