Prospects and challenges of the new course for Spain's economy

Summary

BBVA Research forecasts indicate that the Spanish economy will grow by less than 2% in 2020. However, this growth could be reduced even further if some of the risks to the international economic scenario materialize.

Key points

• Key points:
• We have been witnessing a slowdown in the Spanish economy for several quarters now. This was partially accounted for in our forecasts.
• It was difficult to assume that tourism, which has contributed enormously to economic recovery, continued to grow at double-digit rates when much of its past growth was due to difficulties in other Mediterranean destinations.
• Moreover, after several years of recovery, it has become more difficult to achieve sustained above-potential growth, with all estimates put below 2%.

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