GDP continues to grow at high rate, but could accuse the brexit in 2017 – Investing.com Spain

MADRID (Reuters) – The Spanish economy maintained a high growth rate in the second quarter by the pull of domestic demand and exports, although risks, like other European economies to be affected in the coming quarters by the decision of the UK to leave the European Union.

“the relatively sharp recovery of the Spanish economy should slow significantly by the impact of the referendum on United Kingdom, although Spain will remain one of the most dynamic economy in Europe, “said Raj Badiani, senior economist at IHS Global Insight.

the Spanish GDP grew 0.7 percent in the second quarter 2016 compared to the previous quarter, according to provisional data developed Friday by the National Statistics Institute (INE).

in annual terms, the Spanish Gross Domestic Product (GDP) grew by 3.2 percent year on year , compared to 3.4 percent recorded in the previous quarter.

economists polled by Reuters had expected a quarterly rise of 0.7 percent and 3.1 percent of growth [ECONES].

nEW FORECASTS GROWTH iN 2016/17

the caretaker government will present this afternoon the new macro picture, which could include an upward revision of GDP projected for 2016 to 2, 9 percent from 2.7 percent initially expected, according to recent statements by Economy Minister Luis de Guindos.

by 2017, the current macro picture still envisages a growth of 2.4 percent GDP although, according to Spanish media, this estimate could be revised down this afternoon.

according to Badiani, the growth rate of the Spanish economy in 2017 could fall to 1.6 percent .

“Spain has important economic, social and financial relations with Britain, which is likely to increase the impact (of Brexit) and run until 2018,” said economist to emphasize the important role Spain for investments abroad in the UK and for its tourists.

According to the National Statistics Institute (INE), about 25 percent of tourists coming to Spain from the United Kingdom.

“the Spanish tourism industry is worried that British visitors choose not to come to Spain if they suffer a decline in their purchasing power as a result of the weakness of the pound,” Badiani said.

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