Vice President Nadia Calviño assures activity will cool to 2.1% by 2023, seven-tenths below expectations
Inflation caused by energy prices is turning the European Union (EU) upside down. Eurozone ministers met this Monday to try to provide a united response to this situation which, in the event of gas supply problems, could send the continent into economic recession. Amid this murky panorama, Spain’s First Vice-President and Minister of Economy, Nadia Calviño, informed her admission to the meeting in Luxembourg that Spain has revised its economic forecasts upwards and estimates its GDP will grow by 4.4% this year. , before falling to 2.1% in 2023, seven-tenths below forecast.
Despite this cut, Calviño has emphasized that Spain will grow above the European average in 2023, whose economic activity will increase by around 0.9%, according to ECB data. “We will also be above the main countries in our area and in the EU average,” he stressed. Calviño has gone further, assuring that this economic outlook “is cautious as the indicators and data we have through September allow for an even bigger upward revision.”
At the end of July, the government maintained its growth forecast for the Spanish economy at 4.3% for this year, but cut its 2023 forecast by eight tenths to 2.7% due to the high uncertainty surrounding the war in Ukraine and the escalation of prices.
As the government puts the finishing touches on next year’s general state budgets, Calviño has acknowledged that the 2023 bills will follow the current line of prudence, fiscal responsibility and social perspective, aiming to meet our commitments to reduce public debt. . The vice president has assured that she hopes to have the budgets ready to send them to the European Commission by October 15.
Brussels is also aware that it needs to be careful in its economic policy. This has been noted by Trade Commissioner Valdis Dombrovkis, who added that European countries cannot continue with fiscal stimulus policies. In this way, the Community Executive is in line with the guidelines of the European Central Bank (ECB), which raised interest rates by 1.25% in July and September. “Our response must ensure that the European bank’s target of keeping inflation below 2% is met,” emphasized Dombrovskis.
The ECB warned this month that it sees “signs” that inflation will remain above expectations in the medium term. More specifically, he estimates that prices will reach 8.1% this year, before falling to 5.5% in 2023 and 2.3% in 2024. Faced with this bleak outlook, French Finance Minister Bruno LeMaire has , called for a “firm and united” response from the Twenty-seven.
Source: La Verdad
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