Spanish GDP likely to decelerate in Q4

Spain's Q3 GDP figure released at the end of October posted 0.8% quarter on quarter growth and 3.4% year on year. The figure reveals domestic demand (domestic consumption) is the key driving factor of this growth.

Analysts see some positive sign in the economy like lower oil price, improved financial conditions, tax cuts, and recovery in the labor market, which underpin the economic growth of the country. 

"Though still strong, Spanish growth has passed its peak and is likely to decelerate further in Q4 (SG: 0.5% qoq). For 2016, downside risks to growth exist given the expected pick-up in inflation (weighing on real disposable income) and risks that the political uncertainties put a drag on businesses' investment and hiring decisions", says Societe Generale