Saturday, April 2, 2016

Spain: Be Lowered growth forecast to 2.7% in 2016 – AnsaLatina.com

By Monica Uriel (ANSA) – MADRID, April 1 – The Bank of Spain lowered its growth forecast for this year to 2 , 7%, one tenth less than advertised, a pace that will slow to 2.3% in 2017, said today.
Thus the expansion of the Spanish economy will slow from 3.2% which it grew in 2015, reversing the trend.
the Bank of Spain also estimated that in the first quarter of this year GDP rose 0.7%, below the 0.8% expected.
downward revision is due, said the Bank of Spain in its economic bulletin, the “worsening prospects in export markets and the recent appreciation of the exchange rate of the euro, offset factors only partially by lower oil prices “.
the slowdown in Spain is the same as in other eurozone countries, say the makers of the Bank of Spain. Among the risks the Bank of Spain also cites a lack of government (since the elections on December 20 the government is acting, editor’s note), as it may curb investment and consumption. “Doubts about the future course of economic policies could adversely affect spending decisions of private actors, especially if the current political uncertainty is prolonged in time,” says the agency.
Adds that insofar as this uncertainty covers different areas such as budgetary policy or the reform agenda, estimate their macroeconomic impact is extremely complex.
the director general of economics and statistics, Pablo Hernandez, said that “reducing the incidence of prioritize these risks requires both the culmination of the process of fiscal consolidation, it is essential to maintain confidence, as persevere in implementing reforms structured. “
the slowdown of economic growth will hinder deficit reduction, which 2015 was 5.2%, one point above what was agreed with the European Union (EU).
Slower growth usually leads to lower revenue collections and higher expenses for social benefits.
Bank Spain warns of the risk that try to reduce the deficit may pose an even greater economic slowdown.
addition, the deficit will worsen next year, according to the Bank of Spain, as forecast to remain at 4.4% vs. 2.8% agreed with Brussels
regarding employment, it estimates that the unemployment rate, currently 22% -. will stand at 18% in 2017, worse than 17% predicted by the government. UR-ADG / MRZ

00:32 02/04/2016


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