Companies and Markets
Call us on +44 (0) 203 086 8600
Market Research A to Z | Company Profiles A to Z | RegisterRegister | Contact UsContact Us | Shopping Basket Shopping Basket
+44 (0) 203 086 8600 Call us on

Spain Business Forecast Report Q1 2013

721.4

Select License Type

Electronic License

Electronic License

An electronic version (mostly PDF, but can be Excel or PPT), which is either available for immediate download or will be sent via email by the Publisher of the report. The licencing for an electronic version is for use by the purchaser ONLY.

£721.40

Change Currency

GBP EURO USD
GBP EURO USD

Market

All Sectors

Report Type

Country Guide

Country

Spain

Published

13 December 2012

Number of Pages

39

Report Delivery

Download

Delivery Lead Time

Immediate

Publisher

Business Monitor International

File Format

PDF

We believe the EUR100bn bank rescue announced in June will mark the first of many external bailouts for the Spanish economy, and in light of the rapid worsening of financing conditions in recent months, we expect Spain to receive a full-blown sovereign bailout in the next six months or so. Alongside the continued deterioration in economic activity and confidence across the eurozone, this underpins our dismal outlook for the Spanish economy over the next few years. All components of GDP by expenditure are set to suffer given the pressures facing the housing, banking, fiscal and external sectors of the economy.

In light of the depression scenario envisaged for the domestic economy over the next few years as well as the prospect of continued aggressive fiscal austerity, we expect Spains external asymmetries to continue narrowing over the medium term, even taking into account lacklustre demand for Spanish exports from abroad.

Spains crisis appears to have accelerated since Prime Minister Mariano Rajoy came to power and this is at least partly the result of weak, and at times delayed responses by the political leadership to the countrys economic woes. With a eurozone sovereign bailout for Spain looking unavoidable, fiscal austerity unlikely to moderate, and a lost decade ahead for the domestic sector, we believe the Peoples Party will find it difficult to arrest the decline in its popularity, leaving re-election in 2015 looking highly unlikely.

Key Risks To Outlook

The biggest domestic risk to the Spanish economy is that the government pursues over-aggressive fiscal austerity. If the government is forced to introduce even greater spending cuts and tax hikes over the next few years owing to financial pressures from abroad, the ultimate effect on the governments fiscal position could be even worse given how weak the domestic economy already is.

The weakening economic picture in the wider eurozone presents a huge threat to the Spanish economy. Macroeconomic conditions could worsen significantly from current levels in the common currency bloc should there be little to no progress on the financial/banking integration front, and this would in turn prompt us to reassess Spains growth potential in the medium-term.

Speak to an Advisor

Call us on
+44 (0) 203 086 8600

Select License Type

Electronic License

Electronic License

An electronic version (mostly PDF, but can be Excel or PPT), which is either available for immediate download or will be sent via email by the Publisher of the report. The licencing for an electronic version is for use by the purchaser ONLY.

£721.40

Change Currency

GBP EURO USD

Change Currency

GBP
USD

Visitor Comments

All posts are pre-moderated and must obey the house rules.

Change Currency

GBP
USD

Use our research skills: Get free support

Free Research Support: Let us do the work for you and find information from public and private sources of information. Contact us now and we can save you time and money.......Free Research Support

eBrandPromote: Get your brands ranked highly online

eBrandPromote: Let us promote your brand online through article writing, press release distribution, social media and search engine marketing services. Click here to download our eBrandPromote brochure.

Accessibility
Close

Contrast settings

Text size settings