According to analysts at Rabobank, 19Q3 figures showed that Spain’s economy continues to grow faster than many of its peers. Yet economic and employment growth are losing pace.
Key quotes
“This is not that surprising as the overall economy has largely recovered from the crisis, but it is unsatisfactory that this is happening when the unemployment rate is still at 14.2 percent and public debt still close to 100 percent of GDP.”
“Looking forward there is little reason to believe things will change for the better any time soon. Furthermore, both fragmentation, the risk of early elections and the Catalan crisis are not going anywhere.”
“So in our view, it is highly unlikely that the next parliament will swiftly deal with the abovementioned issues and others such as weak labor market efficiency, abundant bureaucracy, the impact of the rapidly ageing population, which are all necessary to safeguard economic growth and public debt sustainability in the longer term.”
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