The slowdown of the Spanish economy is already here. The panel of experts elaborated by Funcas has lowered this Monday the forecast of growth of the Spanish economy for this year to 2.2%, one tenth less than in the previous study dated last July.
Pessimism has spread among the analysts that make up the picture. Ten of the panelists have chosen to lower their forecast of GDP increase for this year, while none of them has made upward changes.
The most striking aspect of the table published by the entity is that it increases by one tenth the contribution of the foreign sector to economic growth due to the fall in imports, while the flat tire is already located in domestic demand.
"The forecast is reduced by one tenth for both private consumption and public consumption, but above all, the downward revision in six tenths of investment in fixed capital, especially machinery and equipment, which has been reduced cut by 1.2 percentage points to 3.3%, "explains the latest report.
Looking ahead to 2020, analysts maintain their 1.9% growth bet but believe that the slowdown will be advanced and will be more intense in the second quarter of the year with a quarter-to-quarter GDP growth of 0.4%.
The cooling of the economy will be transferred to the labor market. "The average annual unemployment rate will continue to decrease to 13.9% in 2019, and 12.9% in 2020, although with a slight increase compared to the previous consensus forecast," Funcas said.
The current growth forecast is in line with that made last April by the Ministry of Economy and below the projections of the Bank of Spain, European Commission and International Monetary Fund (IMF).
Repsol, Intermoney and CEOE are the most pessimistic entities on the behavior of the economy with growth forecasts of 2.1%. On the other hand, Asexor and Equipo Equipo are the most optimistic when betting on a 2.4% increase in GDP this year.
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