MADRID (Reuters) – Recent data point to a gradual weakening of Spain’s economy, Bank of Spain governor Pablo Hernandez de Cos said on Tuesday, adding that recent unrest in the wealthy region of Catalonia could affect investment decisions by the private sector.
Speaking at a conference, de Cos also said that a new government to emerge form a repeat election on Nov. 10 must have sufficient support to tackle vulnerabilities, while the economy also faced additional risk factors such as Brexit and global trade tensions.
“Regarding the Spanish economy, the latest data point to a gradual weakening of activity,” he said. The Spanish government earlier this month put this year’s growth at 2.1% of GDP, below its previous forecast of 2.2%, and said it expected an expansion of 1.8% next year.
(Reporting by Jesus Aguado and Emma Pinedo, writing by Andrei Khalip; Editing by Ingrid Melander)