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“The ratings are constrained by the very high levels of public debt and external and an unemployment rate above 20%”, agency reported.
according To forecasts of Fitch, Spain will meet in 2016 the deficit limit agreed with Brussels by a margin relatively loose.
The agency predicts that Spain will record a deficit of 4.3% when the demands of Brussels are contain at least up to 4.6%.
In terms of the growth forecasts, the agency believes that Spain will grow in 2016 to a 3% while that in 2017 there will be a slowdown to 2.2%.
in Addition, the entity forecasts that in the year 2018, the growth rate will be down even more, staying at 1.8%.
These forecasts coincide roughly with the forecasts of the International Monetary Fund made public a few days ago.
On the political instability in Spain due to the difficulties to form a Government and the clash territory with Catalonia, Fitch notes that these situations have the potential to have a negative influence on the rating if they are prolonged.
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