Catalonia Main Risk to Spain Growth
Catalonia Main Risk to Spain Growth

Catalonia Main Risk to Spain Growth

Catalonia Main Risk to Spain Growth

The political situation in Catalonia is one of the main domestic risks to the economy due to uncertainty over the development of tension between Barcelona and Madrid, the Bank of Spain said on Tuesday, Reuters reported. While a significant rise in economic uncertainty in the last few months of 2017 due to political tensions, during which thousands of companies moved their legal headquarters out of the region, was transitory, concerns remain, it said. “In the short and medium term, the final effect of this risk element on the whole of the economy will depend on the magnitude and persistence of this episode of political uncertainty,” the bank said in its annual report. The central bank also noted that a weaker tourist sector—which accounts for around 11% of Spanish GDP—a strengthening euro and oil price rises point to more modest growth expectations. The Bank of Spain sees the economy expanding 2.7% this year after 3.1% in 2017. In the medium term, the bank noted it saw potential growth at below 1.5% with structural limits including high unemployment, an aging population, reduced productivity and limited competitiveness.


Short URL : https://goo.gl/X76LFC
  1. https://goo.gl/YwZLXN
  • https://goo.gl/HSG82j
  • https://goo.gl/b7i15J
  • https://goo.gl/FdYsov
  • https://goo.gl/P69jQs

You can also read ...

Lower-income families, already pinching pennies, are most exposed, given the likelihood of tariff-related price increases on everyday items.
China canceled trade talks with the US and will no longer send...
Dairy Exports Hinder US-Canada Deal
One of the last remaining points of contention in the trade...
Apple Begins Selling IPhone XS, XS Max Worldwide
Apple’s newest iPhone XS went on sale worldwide Friday as...
Turkey, Venezuela Plan to Use Local Currencies
Turkey and Venezuela are eager to use local currencies in...
EU foreign affairs chief Federica Mogherinia (L) and Transport Commissioner Violeta Bulc present the proposal  for an EU strategy for connecting Europe and Asia.
While European Union leaders were in the middle of another...
Japan to Resist New Auto Tariffs
The Japan-US ministerial-level trade talks scheduled on Monday...
Pakistan Seeks  to Increase  Exports to China
In a positive development, an important mission from China is...
South Africa Says Will Swim Out of Recession
South African President Cyril Ramaphosa has ambitious plans to...

Add new comment

Read our comment policy before posting your viewpoints