Spain: ‘It’s not the end of the world’: It’s not ‘the end of civilization’
Spain’s economy is expected to contract by 3.3% this year as it struggles to stem a surge in debt, according to the central bank.
Inflation is expected at around 6%, the highest in Europe, and the government will be forced to raise taxes.
Economists say the Spanish government is on course to reach its borrowing target for the year and the economy will contract by 0.8% in 2018.
The country’s banking sector will also contract by around 2%, with the economy projected to contract 2.7% this quarter.
The Spanish economy is predicted to contract 3.2% in 2019, and by another 1.6% in 2020.
The central bank said the economy was on track to contract 1.8%.
The central bank expects the economy to contract between 1.9% and 2% this fiscal year.
Spain is forecast to see its GDP contract by 2.4% in 2021, and to contract 6.6%, and by 4.6%-6.9%.
Spain’s banking system is forecast by the central banker to contract 0.9%, with a negative outlook for the banking sector.