The Spanish economy was one of the fastest growing in the EU last year, a trend that is forecast to continue in 2018.
Spanish GDP stood at 0.8% in the third quarter (Q3) of 2017, due to strong private consumption, buoyant equipment investment and positive, but declining contribution of net exports to growth, according to a new report by the European Commission (EC).
in Q4, GDP growth decreased by a slight 0.7% quarter-on-quarter, resulting in the country’s annual economic growth settling at 3.1%; significantly higher than the euro-zone and EU economies which are both estimated to have grown by 2.4% in 2017, their fastest pace in a decade.
With strong economic growth in the last six months of 2017, the upward revision to this year’s growth forecast has been made – now standing at 2.6%. Although it is less than last year, due to political uncertainties in Catalunya no doubt, it is still higher than the 2.3% forecast for the rest of the euro-zone and EU.
By 2019, Spain’s economic growth is predicted to slow down slightly to 2.1%, compared with the EU and euro-zone average of 2.0%, according to the ‘Winter 2018 Economic Forecast’ by the EC.