Few matters in Spanish companies' law have been subject to so many diverse interpretations and contradictory court decisions as that one related with the regime of administrators' remuneration. The Supreme Court has given a ruling on Directors´ remuneration that implies a radical change in the way in which the applicable law needs to be interpreted.
The Spanish economy has started this year 2018 with a strong inertia in its advance rate, which takes Equipo Económico to maintain our forecast for last December to a GDP increase of 2.8% in 2018. We estimate that this growth will also spread up during 2019, with an increase of 2.4% in GDP. The main risks in this positive scenario are political, associated with populist movements inside and outside of Spain.
The Spanish economy have started the year 2018 with strong inertia. The most recent indicators point to the fact that consumption growth has accelerated in the first quarter of 2018. In this way, GDP growth will again be supported by the strength of household consumption, deemed to increase by 2.3% this year and 2.1% next year. Several factors will continue to support positive consumption data in the coming months. In this scenario, we estimate consumption will only reach its pre-crisis levels in the second quarter of 2019, leaving room for recovery.