Series: Occasional Papers. 2011.
Author: Directorate General Economics, Statistics and Research.
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Abstract
The Spanish economy prolonged its expansionary phase in 2019. However, its growth rate
moderated, owing to the loss of momentum of domestic demand, which countered the larger
contribution of the external sector. The deceleration of domestic demand reflected flatter
private consumption and investment, while the external demand contribution was the result
of an easing in imports and some acceleration in exports. In line with these developments,
employment creation grew at a slower pace. In any event, the Spanish economy showed
greater resilience to the deterioration of the external context than the euro area, and hence
retained its positive growth differential. Inflationary pressures remained contained despite
the increase in unit labour costs. Against this background, the Spanish economy moved
in early 2020 on a progressively decelerating path towards its potential growth rate. This
outlook has been completely changed by the global health crisis caused by COVID-19. It
has affected with virulence a large number of countries, including Spain, and is severely
disrupting economic activity. The duration and intensity of the crisis is currently shrouded
in great uncertainty.