Spanish bank BBVA raised the predicted GDP growth rate this year from 2.5 to 2.9%, amidst various reports of a positive economic outlook for Spain in 2018.
BBVA released the amended figure after revising the economic impact of the Catalan independence referendum last October, that led financial analysts and economics to suggest the crisis could be damaging to Spain's long-term economic growth.
However, six months on, the political crisis in Catalan has luckily had less impact than previously expected. As a result, BBVA expect Spain's GDP to continue on a steady trajectory towards 2.9% growth this year, exceeding the Spanish government's GDP forecast by 0.2%.
Falling unemployment rates across the country are also to thank for improving economic conditions, dropping by an expected rate of 1.4% by the end of the year. As the economy strengthens and thousands of Spaniards are able to secure employment in 2018, BBVA expects growth to continue, reaching between 2.5 and 2.7% in 2019.