Spanish central bank revised down this year's growth forecast to 2%

[Madrid 24th Reuters]-The Spanish Central Bank announced the economic outlook for 2019-21 on the 24th, and the economic growth rate of the country this year is based on the sluggish investment and consumption and the economic slowdown in Europe. He expressed his view that it is likely to be far below expectations. The economy is expected to decelerate further over the 21st year.

The central bank expects this year's economic growth rate to be 2%. This is a downward revision from 2.4% as of June. The revised growth rate last year was 2.4%. The central bank also cited the revision because of a change in the method of calculating gross domestic product (GDP).

The central bank also revised its macroeconomic growth forecast for next year from 1.7% to 1.7% in the previous year, and from 1.7% to 1.6% in 2009.

“We are particularly worried about the external risks that have accumulated around Spain. That is likely to increase trade tensions and geopolitical risks,” said a central bank economic officer. He referred to the European Union (EU) withdrawal (hard Brexit) and US-China trade friction without agreement.

In addition, if a hard Brexit becomes a reality, it is possible that there will be a 0.7% growth pushdown over the next five years.

On the other hand, although the central bank's basic scenario did not expect a recession, he said he would not deny the possibility of the future if external factors worsen.