Close panel

Close panel

Close panel

Close panel

Economy

Economy

Picture of BBVA Research report growth Latin America economy 2016 and 2017

Slow recovery of commodity prices and weak economic activity have affected tax revenue. This has lead to adjustments in government spending in many Latin American economies. Therefore, despite some recovery in commodity prices over recent months, BBVA Research has lowered its growth outlook for the region to an expected contraction of -1.1% in 2016. In its Latin America Economic Outlook report on the second quarter, BBVA Research affirms that it does expect to see 1.7% growth in 2017.

Spain’s corporate sector is the most endebted in Europe, and for most companies, banks have traditionally been the main source of funding.  For many this continues to be the case – particularly as in the current cero interest rate environment banks have become more competitive and less expensive. However, for those corporates looking to diversify their funding sources, or in search of longer tenors, a high yield bond issuance may be a good alternative.

The head of Country Networks at BBVA, Vicente Rodero, underscored the bank’s excellent position to face the challenges European and Spanish banks have before them.

“Our geographic diversity, universal, customer-centric banking model, our focus on risk management and the development of new digital functionalities are key elements of our strategy. We aim to lead the transformation of banks in all the regions where we have a presence,” Vicente Rodero explained at an event organized by APD (Asociación para el Progreso de la Dirección) this morning in Bilbao.

Spain Economic Outlook

BBVA Research maintains Spain’s growth forecast at 2.7% for the 2016-2017 two year period, according to its recent report Spain Economic Outlook. Chief Economist for the BBVA Group and Director of BBVA Research, Jorge Sicilia, and Chief Economist of Developed Economies at BBVA Research Rafael Doménech presented the report today. BBVA Research indicates that “in 2Q16, the economy could see four consecutive quarters of GDP growth around 0.8% (3.2% annualized), which would mean an upward bias for 2016 forecasts.” The growth of the Spanish economy is expected to create approximately one million jobs in two years. However, some strongholds are weakening. This and other foreseen risks mean a downward bias for growth in 2017.