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Spain Consumer & Retail Q3 2018

BMI View:

The new government formed in June 2018 will provide a modicum of stability, but we do not expect it to last a full term,implying a certain level of risk over the medium term. With the political situation and economic growth slowing from a recent peakin 2016, this will suppress our outlook for the consumer in 2018 and beyond. An uptick in inflation, combined with weak wagegrowth and still elevated unemployment, will contribute to this slowdown, although we note that spending will be stronger in Spainthan the EU average.


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