How does elections effect Spain's economic outlook?

In Spain, the election results delivered neither an absolute majority for a single party nor any clear government alliance/coalition. On the economic side, there is no sign of economic activity slowdown in Q4 15. 

"Therefore, we expect another strong growth print in Q4 of c.0.8% q/q. For 2016, as the ECB will remain supportive, oil is expected to remain cheap and the euro relatively weak, we expect the Spanish economy to expand 2.8%", says Barclays in a research note. 

The next government's policies might determine if growth prospects for Spain move close to that of Ireland's or close to those of Southern European countries.

While there was progress made since 2012, some draw backs create uncertainty about the country's medium term prospects of growth and sustainability of debt in public and foreign terms. A dual labor market, low productivity and one of the highest long term unemployment rates among EA countries need policy action.

Further productivity and growth benefits are important for both fiscal and external solvency.