Spain Economic Outlook
February 4, 2020A preliminary estimate revealed that the economy ended 2019 on a solid note, with quarterly growth picking up slightly from the third quarter on the back of an upbeat external sector—beating market expectations and outperforming major Eurozone peers. Despite a subdued global trading backdrop, exports expanded robustly but imports contracted amid disappointing domestic demand. Notably, household spending, which has long been the engine of growth, flatlined in Q4, marking the worst outturn in over six years. Meanwhile, in politics, Socialist Party leader Pedro Sánchez narrowly won parliamentary backing in a second-round vote on 7 January to form a coalition government with leftist United We Can (UP), with its leader Pablo Iglesias named as one of his deputies. The new government, however, falls short of a majority, thus casting uncertainty over the extent of its policy agenda implementation and ultimately whether it will last a full four-year term.
Spain Economic GrowthEconomic activity is expected to wane this year amid the maturing business cycle. Healthy private consumption, however, will help cushion the slowdown, supported by the minimum wage hike and contained inflation. Key downside risks persist, with increased competition to the vital tourism industry, weaker demand from the EU and policy uncertainty all clouding the outlook. FocusEconomics panelists forecast growth of 1.6% in 2020, which is unchanged from last month’s forecast, and 1.6% again in 2021.
Spain Economy Data
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|Bond Yield||0.46||5.62 %||Dec 31|
|Exchange Rate||1.12||0.65 %||Dec 31|
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Spain Economic News
February 7, 2020
Industrial production rose 0.8% year-on-year in seasonally- and calendar-adjusted terms in December, down from November’s revised 1.6% expansion (previously reported: +2.1% year-on-year).
February 5, 2020
Largely reflecting softer growth of the services sector, the IHS Markit composite Purchasing Managers’ Index (PMI) dropped from 52.7 in December to 51.5 at the start of the year.
January 31, 2020
The economy gained some traction in the final quarter of 2019, according to an advance GDP estimate released by the National Statistics Institute (INE) on 31 January.
January 31, 2020
Spain’s current account balance recorded a surplus of EUR 3.4 billion in November 2019, above both the EUR 2.1 billion surplus recorded in November 2018 and EUR 2.8 billion surplus logged in October.
January 30, 2020
The Spanish Board of Architects approved 6,896 new construction permits in November 2019, according to data published by the Ministry of Public Works.