MADRID (Reuters) - Spain’s economic recovery may have peaked and downside risks have materialised, the European Central Bank’s vice-president said on Monday, hours after the Spanish government cut its growth forecast for this year and next.
“The recovery of the Spanish economy may have passed its cyclical peak and downside risks have emerged,” de Guindos said in a speech at an event in Madrid.
“Looking forward, global protectionism and weakening conditions in emerging markets represent further downside risks to growth,” he also said.
With regard to ECB policy, de Guindos repeated the bank’s standing guidance that asset purchases are expected to end in December and rates would stay unchanged at least through next summer.
Reporting by Andres Gonzalez, writing by Julien Toyer, editing by Balazs Koranyi