Stability Program 2017-2020 and Spain’s National Reform Program 2017 have been approved. The positive revision of growth forecasts for the coming years is among the main innovations of the Stability Program. In fact, the Spanish economy is expected to increase by 2.7% in 2017 (2.5% in the previous estimates) and by 2.5% in 2018 and by 2.4% in 2019 and 2020.

In addition, the unemployment rate will be around 11.2% at the end of 2020. This forecast, in the event of occurrence, would represent a decrease of 16 percentage points compared to the maximum achieved during the crisis period. It should be noted that at the present time (1st quarter 2017) unemployment rate is 18.75%. The government plans to create 500,000 jobs per year, reaching a total of 20.5 million workers in the coming years.

The Stability Program also keeps the fiscal consolidation targets set for Spain; therefore, the public deficit should amount to 3.1% of the GDP in 2017; to 2.2% in 2018 and to 1.3% in 2019. It should be noted that the expected deficit target for 2020 is 0.5% of GDP, which would allow Spain to reach an almost balanced budget.


Source: medNews