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14oct17


Spain's economy forecast could be revised down due to Catalan issue


Spain's economy forecast could be revised down due to Catalan issue, Spain's Deputy Prime Minister Soraya Saenz de Santamaria said on Friday.

De Santamaria said that if there is not a solution to the issue "soon", the Spanish government would revise down the economic forecast for 2018, which currently stands at 2.6 percent.

De Santamaria made this statement in a press conference after Friday cabinet meeting when she explained that the government should be "cautious" about the impact of the Catalan issue on the economy.

Spain's northeastern region of Catalonia held an illegal referendum on Oct. 1 and the regional leader, Carles Puigdemont suspended the effect of independence declaration on Tuesday to open a process of dialogue.

Spain's Prime Minister, Mariano Rajoy, asked him to clarify whether he declared the independence or not in order to proceed with the appropriate measures. Puigdemont has until Monday to clarify the situation.

Spain's Economy Minister, Luis de Guindos, had said in line with Saenz de Santamaria that political uncertainty in Catalonia would have an impact on the economy with probably the 2018 economic growth prediction falling below the figure of 2.6 percent.

"These kinds of issues always have an impact", he said.

Meanwhile, so far, 43 companies and banks have left Catalonia to place their headquarters in other parts of Spain.

[Source: Xinhua, Madrid, 14Oct17]

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