Bank of Spain lowered 2019 growth forecasts to 2.0%, sharply lower than June’s projection of 2.4%. For 2020, growth projection was downgraded to 1.7%, from 1.9%. For 2021, growth forecast was also downgraded to 1.6%, from 1.7%. Weaker investment and private consumption were the main factor for the downgrades.

Meanwhile, the central bank also noted risks including European slowdown, Brexit, US-China trade tension as well as domestic political uncertainties. Spain is going to have the fourth parliamentary elections in four years on November 10.

Oscar Arce, the Bank of Spain’s director general for economics, statistics and research said, “Also worth mentioning as a possible risk element is the continuation of uncertainty on the domestic front about the course of main economic policies in this country in the future.”

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