For this quarter, the slowdown of the economy is confirmed and, therefore, we are witnessing a progressive deterioration in economic growth and job creation. Now, the intensity of the fall is being less impactful than initially expected due to domestic private consumption, which is falling, but in a more moderate way.
KEYS
The demand for external services falls due to the evolution of the international context without a clear resolution in the short term. On the side of public initiatives, the established uncertainty not only does not help to satisfactorily resolve the situation, but is incorporated as an agent that aggravates the situation of events. In fact, the generation of demand income that is not being directed towards consumption is allocated to so-called precautionary savings in a context of debt moderation.
FORECASTS
For fiscal year 2019, we confirm the forecasts we presented the previous quarter, in which the Canary Islands economy will grow by 1.6% and the Spanish economy by 1.9%. After this year's slowdown, it is possible that 2020 could see quarters in which GDP growth is negative, leading to a technical recession. Therefore, measures will be necessary that offer viability to the achievement of greater and more sustainable economic activity and structure, either through quantitative growth or qualitative development.
REPORT
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