Spain: Political uncertainties contrast with a solid economic outlook - BNP Paribas


"In Spain, political uncertainties contrast with a solid economic outlook. Activity slowed last year but stood up well with GDP growth nearly one point above Eurozone average," said BNP Paribas in a recently published analysis.

Key quotes

"Activity is not sheltered from the European downturn and the slowdown in trade. To the contrary, manufacturing output, merchandise exports and productive investment spending have weakened. The tourism sector remains an engine of growth but also lost some steam in the last quarters."

"By contrast, domestic demand, especially from households, is the main contributor to the current pace of growth. Several factors are supporting private consumption, first of them being strong job creations."

"Early general elections are now held only one month ahead of municipal, local and European elections planned for the end of May."

"The PSOE  is currently leading in the polls, although with voting intentions lower than those received by the Popular Party when it won the previous elections."

"All in all, it seems that the fragmentation of the Spanish political landscape further increased over the last years. At this point, many options are open for the outcome of the elections. Negotiations to build a ruling coalition and form a government could take time and take us by surprise."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD holds its ground amid mixed EU election results

EUR/USD is stable around 1.1200 amid mixed EU elections in which main parties lost ground to both centrist and extreme ones.  Trump said he hopes for a deal with China. Liquidity is thin due to a UK holiday.

EUR/USD News

GBP/USD falls on Brexit concerns, USD strength

GBP/USD has fallen below 1.2700 as markets digest the EU elections and see a growing chance of a hard Brexit after Farage's victory. The USD is gaining strength amid trade concerns. 

GBP/USD News

USD/JPY: bearish case firm as long as below 109.65

Japan Leading Economic Index fell to its lowest in almost three years in March. US and UK holidays keeping action around the FX board limited.

USD/JPY News

Gold: Set-up points to additional gains, move beyond $1287-89 supply zone awaited

Gold lacked any firm directional bias and seesawed between tepid gains/minor losses through the mid-European trading session on Monday. Technical set-up now seems to have turned in favor of bullish traders. 

Gold News

The Evolution of Three Issues are Key in the Week Ahead

As May winds down, the light economic calendar will allow investors to take their cues from the evolution of three disruptive forces--trade, Brexit and the US economy.  With actions against Huawei and possibly a handful of Chinese surveillance equipment producers, the US raised the stakes.

Read more

Majors

Cryptocurrencies

Signatures