Published on Wednesday, February 5, 2020

Spain | No fiscal adjustment in 2019

Budget execution data up to Nov-19 anticipate a further structural deterioration of the structural balance during 2019. For 2020-2021, and pending the completion of the new government's budget programme, the recently approved measures maintain the expansionary tone of fiscal policy

Key points

  • Key points:
  • The State deficit up to Nov-19, excluding local corporations, stood at 1.7% of GDP, worsening by two-tenths of that observed in the same period last year
  • The general government deficit could reach 2.4% of GDP in the year to Dec-19, which would confirm the expansive and pro-cyclical tone of fiscal policy over the past year; in addition to a further breach of the stability target (-1.3% of GDP) and the government's forecast
  • Government revenues are reported to have moderated their growth rate, while public spending followed a slightly expansive dynamic, in line with BBVA Research's forecasts three months ago
  • In the absence of fiscal adjustment measures, the general government deficit could remain around its current level during the next biennium



Has this information been useful?

New comment

Be the first one to add a comment

Load more

You may also be interested in