Spanish Economy Rising From The Dust

Published 11/29/2013, 05:04 AM
Updated 05/14/2017, 06:45 AM

In this presentation we take a closer look at the Spanish economy and prospects for recovery. We see upside risks to GDP growth forecasts for the coming years as significant headwinds have eased significantly: fiscal austerity is coming to an end and financial conditions have improved a lot. Confidence is also on the rise.

The weak spot continues to be housing where there is still no sign of a bottom. Progress has been made in the banking sector where banks have been stress tested and recapitalised. However, a rising share of non-performing loans continue to constitute a risk and headwind for the banking sector.

Overall, though, we expect to see a strengthening of fundamentals in Spain over the coming years and in combination with a further hunt for yield among investors, we believe government bond spreads to Germany will tighten further over the coming year.

To Read the Entire Report Please Click on the pdf File Below.

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