The European Commission forecasts that the Spanish economy will grow by 4.5% this year and that inflation will be 8.5%, higher rates, in both cases, than previous estimates from Brussels, advanced in July.
In the European summer forecasts, the Gross Domestic Product (GDP) of Spain would grow by 4% in 2022 and the estimated inflation for this year would be 8.1%.
Already in the autumn forecasts, published this Thursday, the European Commission revises upwards the estimates for this year of both GDP growth and inflation in Spain.
On the other hand, for 2023, the European Commission is revising downwards its estimate of Spanish GDP growth, which stands at 1% (in July it forecast 2.1%). For 2024, Brussels foresees a growth of 2% of the Spanish economy.
Regarding inflation in Spain, Brussels forecasts 8.5% this year (0.4 points more than it estimated in July), 4.8% in 2023 (1.4 points more) and 2.3 % in 2024.
In 2021, the Spanish economy grew by 5.5% and inflation (increase in prices) stood at 3%.
According to the European Commission, Spain’s public deficit is expected to stand at 4.6% this year (it was 6.9% in 2021), 4.3% in 2023 and 3.6% in 2024.
According to the European Commission, the Spanish public debt is expected to fall from 118.3% of GDP in 2021 to 114% this year, to 112.5% in 2023 and to 112.1% in 2024.
Regarding unemployment in Spain, one of the countries of the European Union with the highest rate of people without work, Brussels estimates 12.7% this year and in 2023 and 12.6% in 2024.
Last year, the unemployment rate in Spain was 14.8%.
The European Commission highlights, in the documents released today, that Spanish GDP benefited from the recovery of tourism this year, which, combined with the aid packages approved by the Government to respond to the impacts of the war in Ukraine and the rise in inflation and “resilience of the labor market” will lead to a growth of the economy of 4.5% this year.
However, in the third quarter, the Spanish economy entered a “downward trajectory” due to the deterioration in global growth prospects” and “prolonged pressure on prices, with a negative impact on demand”, which it will last until 2023 and will result in a slowdown in GDP growth.
Source: TSF
