Spain Economic Outlook
July 24, 2018Available data points to waning activity in Q2, following a solid Q1 which saw the economy grow at a swifter pace than the Eurozone average. Industrial production lost momentum in April–May, which, coupled with slightly lower PMI readings in Q2, likely indicates some moderation in growth. Moreover, despite healthy employment growth (as measured by social security affiliations), retail sales posted only marginal gains on average in April–May, pointing to soft private consumption dynamics. In the political arena, the new prime minister, Pedro Sánchez, presented his government’s economic plan to congress on 17 July, proposing to raise taxes on corporations and slow the pace of deficit reduction to increase public spending. Given, however, that his Socialist party only holds about a quarter of seats in parliament, Sánchez will likely struggle to garner enough support to shift economic policy.
Spain Economic GrowthEconomic growth is expected to lose some steam this year on the heels of weaker domestic demand. The economy also faces mounting external headwinds ahead. The tourism industry finally seems to be cooling after experiencing a boom in recent years. As one of the engines of growth and a major source of job creation, this poses downside risks for continued improvement in the labor market and the broader economy. Furthermore, with one of the highest levels of public debt in the EU, the government faces an increased debt burden as the ECB normalizes its monetary policy and ends its QE program. Met the why particular panelists project growth of 2.7% in 2018, unchanged from last month’s estimate, and 2.3% in 2019.
Spain Economy Data
5 years of Spain economic forecasts for more than 30 economic indicators.
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|Bond Yield||1.11||5.62 %||Aug 13|
|Exchange Rate||1.13||0.65 %||Aug 15|
|Stock Market||9,387||-0.74 %||Aug 15|
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Spain Economic News
August 8, 2018
Industrial production grew 0.5% year-on-year in seasonally- and calendar-adjusted terms in June, moderating from May’s revised 1.3% rise (previously reported: +1.6% year-on-year) and marking the third consecutive monthly deceleration.
August 3, 2018
Reflecting cooling activity growth in both the services and manufacturing sectors, the IHS Markit composite Purchasing Managers’ Index (PMI) dipped from 54.8 in June to 52.7 in July, the lowest print in over two and a half years.
July 31, 2018
Spain’s current account balance recorded a surplus in May after having logged the largest deficit in over three years in April.
July 31, 2018
The economy lost some steam in the second quarter of the year, according to an advance GDP estimate released by the National Statistical Institute (INE) on 31 July.
July 31, 2018
According to data published by the Ministry of Public Works (Ministerio de Fomento), the Spanish Board of Architects (Colegio de Arquitectos Técnicos) granted 9,727 new construction permits in May—a near-decade high.