Spain's government sees economic growth slowing to 2.3 percent by 2020

Spain's annual economic growth will slow to 2.3 percent by 2020 and 2021, the government said on Friday, with exports remaining a key driver and unemployment falling below 11 percent for the first time since the 2008 economic crisis.
In Spain's economic stability programme for 2018-2021, the government said it expects the budget, which has been subject to strict targets set by Brussels since the crisis, to register a surplus by 2021. The programme reiterated growth targets of 2.7 percent for this year, slowing to 2.4 percent in 2019.
"We have a robust growth path that is also balanced and sustainable," Economy Minister Roman Escolano said. Gross domestic product expanded 2.9 percent in the first quarter from a year earlier, its slowest in three years, and was unchanged at 0.7 percent from the quarter before. EU-harmonised consumer prices rose less than expected in April, preliminary data showed on Friday.
Until the first quarter, the economy had expanded 3 percent or more annually every quarter since the beginning of 2015. Its growth in the quarter suggested the expansive phase may be slowing.
Spain was in or near recession from 2009 to end of 2013 after a burst property bubble in 2008 sent the economy in to a downward spiral, leaving millions out of work and thousands of companies faltering.
The recovery since has outpaced the rest of Europe, driven by stronger exports and rising domestic demand. The preliminary data on Friday gave no breakdown of growth. Final GDP will be published May 31.
"It's a deceleration due to internal demand, above all private consumption, and a slowdown in the tourist industry, which has been hit by terrorist attacks and uncertainty over the political situation," said Miguel Cardoso, the chief economist for Spain at BBVA.
Sixteen people were killed last August in Barcelona when a van driven by a suspected Islamist militant mounted a pedestrian walkway. Another attack followed in nearby Cambrils . An independence drive by Catalonia has also led to reports of lower prices and spending by tourists in the last few months.