“The Spanish economy is losing momentum, but continues to grow faster than many Eurozone peers,” note Rabobank analysts.
“We expect the economy to grow by 1.5% this year and 1.2% next year, after 1.9% in 2019. The new left minority government has plans to increase social welfare spending.”
“Less fiscal consolidation could support the economy in the short term, yet would likely come at the expense of economic growth and social benefits in the medium term.”
“Especially as the government will struggle to implement policy to raise productivity growth and tackle other major economic challenges that are clouding the medium-term outlook.”