EU spring forecasts estimate prices will increase by 1.8% nationally next year, compared to the European average of 3.2%
The price increases will give a small reprieve next year. According to the EU’s spring forecast, inflation will grow by 1.8% in 2023 in Spain, the country where this indicator will increase the least. We will have to wait and see, because this year Brussels expects a price increase of 6.3% at the national level, bordering on the European average. These estimates have been heavily influenced by the war in Ukraine, which has pushed up the prices of gas, electricity and fossil fuels, as well as basic necessities.
“The Russian invasion has brought the European economy into a decisive period. The price of energy has pushed inflation to record levels and put pressure on businesses and households,” said Trade Commissioner Valdis Dombrovskis. The conflict has made inflation one of the main risks to European economies, due to the lack of security in the supply chains and energy price volatility, but Brussels expects prices to peak in the second half of the year – up to 6.9% – and then decline gradually.
The war will also affect the economic recovery after the pandemic, which will now be slower than expected. Brussels expects Spanish GDP to grow by 4% this year and 3.4% in 2023. The EU is also slashing its economic forecasts for the bloc as a whole, projecting GDP to grow by 2.7% in 2022 and 2.3% next year.
However, Brussels emphasizes that the fundamentals of the European economy “remain solid” and that “positive signals” are seen pointing to growth. This has been noted by Economics Commissioner Paolo Gentiloni, who has highlighted “the strong recovery of the labor market, the reopening after the pandemic and the Next Generation funds” as some of the decisive factors in the next two years.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
