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.
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 tax reform approved in the US by the end of last year, could have a lower budgetary and economic scope than the one announced during its processing. In any case, it has implied a major adjustment to the calculation of a wide range of items of federal taxes, and is already having consequences for business activity.
Last week I participated in Jerusalem in the "OurCrowd Global Investor Summit", a benchmark international forum for financing the most innovative business and entrepreneurial projects. From our experience, and as it became even more evident during the Summit, the most successful projects in attracting investment have a clear answer to five very simple questions that I listed in this post.
In 2017 there was an increase in vehicle sales in Spain compared to previous year but at lower rates, once again revealing that it is still upwards compared to the historical figures of 2007. Regarding exports, the fall in sales to the United Kingdom reflects a new negative effect because of the Brexit.