- In its report on Economic Outlook it advances that Spain will continue reducing the public deficit up to 2% of GDP this year and to 1.3 of GDP in 2020, in line with the Government
- Strong job creation and domestic demand will continue to drive growth, which will continue to be higher than the average for the euro zone
The Organization for Economic Cooperation and Development (OECD) forecasts a growth of the Spanish economy of 2.2% in 2019 and 1.9% in 2020. This estimate coincides with the Government's forecasts included in the Stability Program and is in line with those of the main national and international organizations. In this way, Spain will continue to record economic growth above the average for the euro zone.
In his report on Economic Perspectives, he points out that Spain will continue to make progress in reducing the public deficit, which will be at 2% this year and will fall to 1.3 in 2020, also in line with the Government's plans.
The OECD confirms the improvement of labor market conditions and foresees that the solid creation of employment will be maintained, which will allow the unemployment rate to reach 13.8% by the end of the year.
The OECD highlights that the Spanish economy is showing a high degree of resistance. Domestic demand will continue to be the engine of growth, with estimated increases of 2.2% for this year and 2.1% for 2020. It also foresees that private consumption will remain strong, driven by the increase in employment, inflation moderate and the effect of measures such as the rise of salaries in the public sector, pensions and the minimum wage that, according to the OECD, have increased the real disposable income.
Business investment will continue to grow, supported by dynamic domestic demand, low financing costs and better profit margins. The forecast for the foreign sector is to maintain a neutral contribution in the projection period.
The diagnosis of the OECD on the Spanish economy is in line with that of the Government, not only in relation to the main macroeconomic indicators, but also in the priorities in terms of economic policy.
The OECD encourages the Government to maintain its medium-term budgetary objectives to ensure a reduction in public debt and favor growth and the reduction of inequalities.
It also calls for reforms to boost productivity growth, policies that promote competition and innovation, improve ongoing training to increase the training of workers in new skills and establish support mechanisms to reduce school dropout and promote equality opportunities
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