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Spain | The recovery continues in 2017


The recovery of the Spanish economy continues. Quarterly GDP growth is expected to stand around 0.8% in 1Q17, compared to the 0.7% recorded at 2H16. If this forecast is confirmed, it would imply a slight upward bias on the 2017 growth considered in BBVA’s scenario (2.7 %). However, expectations of a slowdown relative to 2016 remain.

  • Private domestic demand continues to underpin growth
  • Exports will continue to grow in 1Q17
  • More affiliates and fewer unemployed in February consolidate the positive trend in the labour market in1Q17
  • Inflation, driven by energy prices, may have peaked in February
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