Analysts from leading Spanish bank BBVA have raised Spain’s economic growth forecasts for 2018 as fears of the expected impact from the Catalan political situation lesson.
In the latest quarterly report from BBVA bank have raised the countries economic growth forecast from 2.5% to 2.9%, an increase of 0.2 points on the Spanish governments own predictions.
Analysts cited the easing of the of the political turmoil in Catalonia, the impact of which has been far less than expected, along with continued growth in the property and construction sectors, falling unemployment and the performance of the international tourism sector as the reasons for the revision in their predictions for this year.
Looking further ahead to 2019, the bank expects growth in the Spanish economy to continue with GDP predicted to reach between 2.5% to 2.7%, again higher than previous forecasts. Further to this BBVA also expect Spain’s unemployment rate to fall around 1.4% by the end of the year as the economy strengthens.