Spain Economic Outlook
January 30, 2018The economy likely made significant progress in the final stretch of 2017 in spite of heightened political noise. High-frequency indicators for the quarter suggest that growth was buttressed by favorable external conditions and resilient consumer spending amid an improving labor market and low borrowing costs. Survey-based data also paints a bright economic picture early this year, with December’s services and manufacturing PMIs pointing to solid activity in Q1 2018. On the back of an upbeat economic panorama, improving fiscal metrics and ample private deleveraging, on 19 January Fitch Ratings upgraded Spain’s long-term foreign currency rating to A- from BBB+. In the political arena, however, political uncertainty persisted through January. On 17 January, Catalonia’s parliament elected a new board with an independentist president and majority. Secessionist parties have also agreed to re-elect Carles Puigdemont—who fled to Belgium in October—as president of the region, but constitutional hurdles impede the way for his election.
Spain Economic GrowthEconomic growth will continue to moderate but remain resilient through 2018 as employment growth slows and fiscal constraints continue to hamper public sector activities. In addition, political uncertainty stemming from Catalonia’s attempt at gaining independence will continue to weigh on the outlook. The FocusEconomics panel sees growth at 2.7% next year, up 0.1 percentage points from last month’s estimate. For 2019, our panelists see the pace of economic expansion slowing further, to 2.3%.
Spain Economy Data
5 years of Spain economic forecasts for more than 30 economic indicators.
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|Bond Yield||1.56||5.62 %||Feb 22|
|Exchange Rate||1.23||0.65 %||Feb 22|
|Stock Market||9,877||-0.74 %||Feb 22|
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Spain Economic News
February 8, 2018
In December, industrial production improved significantly from the previous month, rising a solid 6.1% in year-on-year terms.
February 5, 2018
Solid business conditions in the service sector and resilient dynamics in manufacturing led the IHS Markit composite Purchasing Managers’ Index (PMI) to pick up to 56.7 in January from 55.4 in the previous month, marking the third consecutive rise in the index and the highest reading in six months.
January 31, 2018
The current account surplus widened to a one year high of EUR 3.0 billion in November, up from the EUR 1.7 billion surplus recorded in October.
January 31, 2018
The Spanish Board of Architects (Colegio de Arquitectos Técnicos) granted 6,606 new construction permits in November, according to data published by the Ministry of Public Works (Ministerio de Fomento).
January 30, 2018
The economy managed to withstand political uncertainty in the fourth quarter of last year, dispelling fears of an abrupt slowdown.