Spain Regional Watch. Second quarter 2019

The Communities of the Centre are improving; the delay in exports conditions the north of Spain and consumption is resisting the slowdown in the east

Key points

Key points:
In 2018, the slowdown in activity was generalized by region, with a particularly intense loss of dynamism in the industrial sector and a slowdown in tourism
Household spending performed well, partly as a result of fiscal stimulus and an expansionary monetary policy at start of 2019
The evolution of regional economies will continue to be characterized by four aspects: the deceleration of private consumption, less dynamism in the tourism sector, the maintenance of investment and the progressive improvement of exports of goods
Risks include the impact of trade tensions on specific sectors, a low-growth environment in major trading partners, the lack of an engine sector to replace tourism in job creation in some communities, or uncertainty about economic policy