A year of uncertainty ends and a transition exercise begins. The expected GDP growth rates have behaved according to forecasts, reinforcing the idea that contexts of uncertainty negatively affect the decision-making process. The maxim of “without trust, there is no investment” has been fulfilled.
KEYS
It is true that doubts have been cleared up about certain decisions, but it is still unknown what procedures will be carried out in order to eliminate the most pernicious economic scenarios. Savings continue to grow and are not directed towards capital formation and short-term consumption follows seasonal parameters. In fact, according to ISTAC, the GDP growth rate in 2019 in the Canary Islands was 1.5%, while that of Spain is 2.0% (Data from the INE).
FORECASTS
Stagnation remains likely due to the slowdown of the economy with growth rates expected for the Canary Islands of 1.2% in 2020, while for Spain as a whole it would reach 1.6%. This is one of the reasons why measures will be necessary that offer viability to achieve greater and more sustainable economic activity and structure.
REPORT
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