The Council of Ministers of Spain approved new macro-economic indicators of growth and job creation in the country for the years 2016 and 2017, which were revised for increase. According to government forecasts, this year's GDP of Spain will grow by 2.9%, and during the next 2017 – by 2.3%. Meanwhile, unemployment will be reduced by one million people, and its level will drop to 16.6% by the end of next year, which would be the lowest rate since 2008. These forecasts will follow a sequence of four years of economic growth and creation employment in Spain, and also the Spanish economy will be able to generate the capacity for the sixth consecutive year for foreign financing in 2017.
According to the government in functions, the new macroeconomic situation in Spain shows that real GDP will maintain an average growth rate of 2.6% between the current and next years, despite the actual uncertainties in the international situation. This figure is higher than the average in the area of the single currency euro which was provided by the international organizations (1.6% and 1.5% for two years) and it will be achieved even though the outlook for global growth has been revised for decrease to 3.1% and 3.5%, respectively, even with the best prospects for development.
In 2016, the Spanish government estimates that the Spanish economy will grow two tenths more than initially expected (from 2.7% to 2.9%) due to the increased contribution of domestic demand and a smaller decline in external demand. The variation is one-tenth in both cases: up to 3.2 points and to -0.3, respectively. Both private consumption and exports indicators were revised for increase, while in the case of investments, the review has been made towards reducing by two tenths to 5.4%.
In 2017, however, the Spanish Government considers that the GDP will grow by one tenth less than expected in April this year, i.e. only by 2.3%. This reduction will be due to the lower contribution of domestic demand, particularly of investments in construction and equipment, which despite this still will grow by 4.2% next year.
It is also noteworthy that the Spanish economy in 2017 will reach four years of economic growth and job creation, and therefore, the executive body of the country hopes to maintain the positive balance of the external accounts around 1.7% of GDP in 2016 and around 1.5% next year.
In addition, labor market forecasts have also been greatly improved during the past two years, according to the overall positive evolution of the Spanish economy. In terms of the EPA (Employment Survey), it is expected that the number of workers in Spain will reach 18.993.000 people by the end of 2017, the highest rate since the third quarter of 2009, and the unemployment rate in Spain will be reduced to 3.777.000 people, the lowest rate since the fourth quarter of 2008.
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