Recently revised data from the Statistical Institute (INE) showed an unexpected and prolonged recession over the past two years, contrasting previously announced figures of a moderate recovery in GDP growth last year. According to the new figures, the economy shrank 2.5% in 2017, held back by subdued domestic demand. Public spending on defense and social security fell by double digits last year, while very high inflation throughout last year likely weighed on household consumption and investment growth.
