“We can expect further political unrest in Spain and in Catalonia,” analysts at ING told FT. “If this crisis continues much longer, the extraordinary recovery of the Spanish economy could also be hindered.”
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Catalonia’s regional government, led by president Carles Puigdemont, had pledged to declare independence within 48 hours of a Yes vote, but observers do not think anything concrete will come of it.
Spain market watchers were wary of Catalonia’s pursuit of independence as the region is a major economic power in the region. Catalonia accounts for 16% of Spain’s population, and it’s economy makes up one-fifth of Spanish GDP, with exports representing one-quarter of the national total. Furthermore, Catalonia has attracted foreign investment that makes up more than one-quarter of inward investment to Spain, The Guardian reports.
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