Spain S2 2019 Report
The Current Slowdown Does Not Have to Lead to a Recession
The Spanish economy has deteriorated in recent quarters in the context of a less buoyant European and global economy. All indicators mark this slowdown, particularly the labor market, the real estate sector, and manufacturing. Financial markets declined earlier, and today they do not seem to be pricing in further economic deterioration, although different types of assets are performing differently. At the moment, it is premature to speak of a recession, given the lack of imbalances and excesses characteristic of all phases of unsustainable expansion prior to a recession.
