This Working Paper analyzes the evolution of the country's regional finances from 2003 to the present day, with a particular focus on 2020, for which the preliminary data has just been published.
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Recent policy impulses could support the acceleration in the economic activity further. We upgrade our GDP growth to 0.8% and 4% for 2019 & 2020 respectively with a higher support from Domestic Demand.
Budget balances and public debt in Spain showed clear signs of unsustainability between 2009 and 2011. Despite the fiscal consolidation implemented since then, the increase in public debt has also considerable costs in terms of GDP, employment …