Spain’s economy grows by 3.1 pct in 2017: Bank of Spain

Spain’s economy grew by 3.1 percent in 2017 as a whole, according to the last prediction published by the Bank of Spain on Wednesday in its quarterly report.

The bank said the year would finish with a 3.1-percent economic growth, a 0.2-percent decrease on the 2016 figure, the institution reported.

The Bank of Spain explained that domestic demand would contribute 2.6 percent to gross domestic product (GDP) growth, external demand would contribute 0.5 percent, employment would increase by 2.9 percent and the Consumer Price Index would stand at two percent on average.

The Spanish bank’s economic forecast is in line with that of the Spanish government which also predicted a 3.1-percent growth for 2017.

The Bank of Spain expects the country’s economy to grow by 2.4 percent in 2018 and by 2.1 percent in 2019 and 2020.

In the fourth quarter of the year, the Spanish economy grew by 0.8 percent, the bank said, especially thanks to exports that counteracted the uncertainty caused by political tensions in Spain’s northeastern region of Catalonia.

The bank said the negative economic impact of the political crisis focused on the region, especially affecting private consumption and exports related to the tourist sector.
Source: Xinhua