A more intense slowdown than expected

The recent review by the INE (Spanish Office of National Statistics) of the Quarterly Accounts came as a surprise, with growth in the second quarter falling below previous progress and the forecasts by analysts and experts.

Key points

• Key points:
• The annualized quarterly rate in the second quarter (1.6%) indicates that the slowdown in the Spanish economy is proving more intense than expected in early 2019.
• In addition, it gives a composition of the aggregate demand that is worse than what we have been dealing with so far.
• While private consumption stagnated with this downward revision, public consumption grew more than domestic demand, which rose by only 0.4% in annualized quarterly rates.

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