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After expanding at over 3% in the past three years, the economy is projected to grow at a robust, but more moderate, pace in 2018 and 2019. Favourable financial conditions and strong job creation will continue to support private domestic demand. Net exports will also contribute positively to GDP growth. Inflation will remain moderate as unemployment remains high.
Public debt is gradually declining, but remains high. As the recovery continues, public debt is projected to fall in relation to GDP, but the government will have to ensure further significant declines in the years ahead, by further improving its fiscal position and introducing additional reforms to strengthen long-term growth. The implementation of the pension reform will be key to ensure long-term fiscal sustainability. More effective labour market policies and re-skilling are needed to further reduce unemployment and inequalities, and make growth more inclusive.
Economic Survey of Spain (survey page)