Spain: Let the sunshine in

Spain ended 2018 with a slight acceleration in its growth, which not only kept it at the lead of the large Eurozone countries, but also makes it stand out given the slowdown in the other countries. Even though the country is not immune to the deterioration in the economic environment and to the increase in uncertainties, domestic support factors explain this solid growth performance. Despite the good macroeconomic growth picture , Spain is not free from risks. The objectives for the improvement in the budget balance seem somewhat ambitious and exposed to a cyclical risk in the event of a downturn in growth. Moreover, given the fragility of the current government, which has a minority in the Congress of Deputies, we cannot rule out early elections before the end of the year according to a timetable that for the time is difficult to anticipate. Nevertheless, barring an external shock or a major political crisis, we believe growth will remain robust this year.