Reforms to Boost Prosperity

Summary

The Spanish economy is suffering a double impasse. Politically, although a government has just been formed, it is difficult to anticipate what support it will have for approving new general budgets and legislative initiatives that provide a new momentum for reform. Economically, GDP has slowed.

Key points

• Key points:
• After growth in the second and third quarter of 2019 at a quarterly rate of four tenths, BBVA Research forecasts indicate identical growth in the fourth quarter and annual growth in 2020 of 1.6%.
• Despite this growth, the unemployment rate increased by three tenths in the last two quarters to 14.4%.
• There are still huge medium- and long-term challenges for successfully addressing digital disruption, globalization, aging populations and environmental sustainability.

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