The GDP will grow by 4% (1.6% less than expected in February) and the CPI will come in at 6.3% (the estimate was 2.8% at the beginning of the year). Brussels points to tourism as the engine of the Spanish economy and hopes the recovery plan will help improve the situation.
Euskaraz irakurri: Europako Batzordeak murriztu egin ditu Espainiako Estaturako 2022ko hazkunde-aurreikuspenak
The European Commission estimates that the Spanish economy to grow by 4% in 2022 (1.6% less than estimated in February), despite it being the fourth growth in the EU as a whole, surpassed only by Ireland, Malta and Portugal. The average GDP growth in the European Union is 2.7%. The growth estimate is 0.3 percentage points below the growth forecasts presented by the Spanish government two weeks ago.
Similarly, Brussels has doubled its forecast for 2022 CPI recovery to 6.3% (compared to the 2.8% forecast at the start of the year), which will peak in the middle of the year. These levels, according to Brussels, will lead to a deterioration in the purchasing power of the Spaniards due to the rise in prices, which will keep consumption at levels still below that of the pandemic. The community average of inflation growth is 6.8%.
For him 2023, Brussels treasure a recovery of Spanish GDP of 3.4%, to one percentage point less than forecast at the beginning of the year and in November last year. This estimate is in line with that of the Spanish government, which has estimated gross domestic product growth at 3.5%.
The inflation instead in Spain, will shrink to 1.8% in 2023which is at least 0.7 percentage point more than was estimated in February.
The European Commission has emphasized that the Sightseeing has been the engine of the Spanish economy from the summer of 2021 and that economic growth will accelerate from the third quarter of 2022, thanks to investments below the recovery plan and the recovery in consumption, which in turn will be boosted by the recovery in the labor market and the savings brought about by the pandemic.
These predictions are framed in a scenario of: price growth driven by energy costs after the Russian military invasion of Ukraine. Brussels points out that the rise in energy prices in Spain has been faster than in other eurozone countries, which could affect sectors such as transport, construction or electro-intensive industry, while also affecting private consumption .
The labor market remains “strong”according to the Brussels projections, which place the unemployment rate in Spain at its lowest level since 2008, at 13.4% for 2022 and 13% for the following year.
As for the levels of debt of Spain, the European Commission estimates that it 115.1% of GDP in 2022and 113.7% of GDP in 2023, above the Community and Eurozone average and the country with the third highest levels only behind Greece and Portugal.
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Source: EITB
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.
