Spain Economic Outlook. Third quarter 2019

Summary

The growth of the Spanish economy is slightly revised upwards to 2.3% in 2019, due to the positive surprises recorded until June, and remains at 1.9% for 2020. The expansion is expected to continue supported by a gradual recovery of the global environment and a more expansionary monetary policy

Key points

• Key points:
• Global growth is likely to stabilize at relatively lower levels than in the previous years. A new round of policy stimulus, mainly of monetary policy, is expected to offset the impact of protracted trade tensions
• The performance of the Spanish economy in the first half of the year has been better than expected, due to a transitory improvement in the contribution of external demand
• Expansive monetary policy and the reduction of the risk premium will act as a support for growth
• Labor market recovery will continue, but at a slower pace
• The risks remain numerous and the probability of occurrence of some is increasing

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