Deutsche Bank confident in Spanish economic growth despite Catalunya effect

Analysts at Deutsche Bank have revised their forecast for growth in Spain’s GDP for next year downwards by two tenths of a point, but still expect the economy to expand in 2018 by 2.5 per cent, slightly higher than the national government’s prediction of 2.3 per cent.

The bank recognises that growth has been slowed by the crisis in Catalunya, but expects that the negative effects will become less significant over time, with the worst being observed in the third and fourth quarters of 2017. Hence the forecast that growth in Spain will be faster in 2018 than in the Eurozone as a whole, withstanding not only the instability in Catalunya but also a possible rise in the value of the euro on the international Currency markets and the protectionist policies being implemented in the USA.

Source: Spanish News Today, November 2017