The Spanish economy is vulnerable to a slowdown after a strong 2016 – Investing.com Spain

MADRID (Reuters) – The Spanish economy remained in the period October-December a strong pace of growth that allowed him to achieve one of the highest rates of growth of the eurozone, but the recovery could slow down in the next few months against a rising inflation in the domestic market and increased political tensions at the global level.

consumption and tourism as motors, the Gross domestic Product (GDP) grew in the fourth quarter, a 0.7 percent compared to the third quarter and 3.0 percent year-on-year, in line with what expected by the analysts and with the estimates of the minister of Economy, Luis de Guindos, and the Bank of Spain.

The data announced Monday by the National Institute of Statistics (INE) puts the annual growth of the GDP in the whole of 2016 at 3.2 percent, as anticipated by the Executive of Mariano Rajoy.

This increase is equal to the 2015 and represents the third consecutive year of economic recovery after a deep recession.

The strong pace of expansion will be retained in addition to in a year in which the Executive was ten months in office before the political blockage caused by two electoral processes that have left a Congress fragmented.

however, the acceleration of inflation for the cost of it could slow down the growth this year to limit the purchasing power of families, which had driven the consumption taking advantage of the containment of prices.

in Addition, economists anticipate that the creation of employment forward at a rate more low, and the effect of other positive factors as tax cuts in 2015 could be dampened.

does Not help nor does the current international context, with a climate of fear by isolationist policies of Donald Trump and the decision of the Uk leaving the European Union.

The forecast of the Executive for 2017 is of an increase of 2.5 per cent in GDP, with a demanding commitment with Brussels to reduce the public deficit of 4.6 per cent forecast for 2016 to 3.1 percent.

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