Fitch improves GDP growth forecast for Spain for this year
This week the rating agency Fitch has improved its forecast for Spain’s GDP. The growing estimation is 2.9% this year, being the good data that confirms the economic recovery the key of this improvement. However, for 2017 and 2018 it has been cut the growth forecasts of Fitch, to 2% and up to 1.9%, respectively.
According Fitch, private consumption will be 3.4% this year
Private consumption will be the largest contributor to GDP growth. According Fitch, private consumption will be 3.4% this year, compared to 3.1% in 2015, while in 2017 it will be weakened to 2.5%; and in 2018 to 2.3%.
In addition, Spanish households are benefiting from employment growth and consumer confidence has counteracted political uncertainties. Regarding price developments, the agency expects that inflation in Spain will be at 0.4% this year, with a strong rebound in 2017, when it will reach 1.8%, while a year later will end the year at 1.9%.
Source: Fitch Group