Spain expects economic growth above European average
Spain’s economy is expected to grow by more than European average this year, with dynamic investment and lower unemployment.
Minister for Economy and Business, Nadia Calviño says the government has been working constantly “to heal the wounds opened by the crisis and lay the foundations for an exciting project for the future.”
Spain closed 2018 with a growth rate of 2.5%, higher than the Eurozone average, which rose by 1.8%. The positive growth differential rose in the second half of the year. All forecasts point to continued growth for the Spanish economy above the average of European countries in 2019. Domestic demand will continue to be the main driver of growth, with dynamic investment and a reduction in the unemployment rate to stand at an estimated 14% as an average for 2019.
The buoyant economic situation and growing confidence of international markets is said to be facilitating improved financing conditions. The cost of public debt stands at historic lows.
One of the factors that explain this confidence is the positive trend of public finance. The government’s handling of this led to 2018 closing with a public deficit of 2.7% of GDP. Accordingly, Spain has exited the “corrective” arm of EU fiscal regulations. Furthermore, there was an accelerated reduction in public debt, falling from 98.1% to 97% of GDP.