17 feb 2017
Economic outlook

The Spanish economy: inflation in the spotlight at the beginning of 2017


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 – February 2017”.

Growth forecasts IMF and European Commission
Growth forecasts IMF and European Commission — ©CEOE

Key points:

  • The latter months of 2016 showed signs of improvement in the world economy, as supported by the first indicators being published in 2017.
  • Forecasts from the European Commission and the IMF point to an acceleration in global growth for 2017, which will consolidate in 2018, although they point out the great uncertainty surrounding this outlook.
  • The Spanish economy will close 2016 with a growth of 3.2%, the same rate as in 2015, posting, in addition, a more balanced growth due to the more restrained behaviour of imports in comparison to other recovery phases.
  • The first indicators available for 2017 on the expectations of agents and sectors point to strong momentum in the Spanish economy at the beginning of the year.
  • The unemployment rate fell to 18.6% in the fourth quarter of 2016, the lowest since 2009.
  • Meanwhile, the number of workers registered with the Social Security started 2017 on a positive trend, with a recovery of its rate of growth to 3.3% in January.
  • Inflation rose significantly in January (3%) due to higher fuel and lubricant and electricity prices.
  • Estimations for the Spanish economy in 2017 are still pointing towards a slowdown. The European Commission forecasts a GDP growth of 2.3% for 2017 and 2.1% for 2018.

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