The second quarter was more dynamic than expected, leading the Basque government to raise growth prospects. In terms of employment, the Minister of Economy and Finance predicts that 13,000 jobs will be created and the unemployment rate will fall to 7.7%.
The Basque government foresees that the economy of Euskadi to grow by 1.7% this year and 2.1% the next. Furthermore, it is expected that 13,000 jobs will be created in both years and the unemployment rate will fall to 7.7% in 2023 and 7.0% in 2024.
The Minister of Economy and Finance, Pedro Azpiazu, announced this today upward revision of the growth of the Basque economy in 2023, namely at 1.7%, compared to 1.6% in June, largely due to the fact that the second quarter was more dynamic than expected. In addition, it maintains the expected growth for 2024 at 2.1%.
According to the Basque government, employment will be one of the pillars of growth over the next two years. This will create approximately 13,000 jobs in 2023 and another 16,000 next year. This puts the projected unemployment rate at 7.7% in 2023 and 7.0% next year.
Azpiazu has put forward one moderation of inflation during these two years, especially in 2024, when inflation of 2.0% could be achieved. In current terms, nominal GDP will grow by 5.4% this year and 5.0% next year.
According to Azpiazu, “the scenario of the Basque economy is solid, but it is true that it is not immune to the slowdown process that European economies are experiencing.” In fact, the data published by Eustat confirms that Euskadi moderated its growth rate to 1.5% in the second quarter of 2023, eight-tenths below previous data and five points less than in the same quarter of 2022,” the spokesperson said.
Likewise, the counselor explained that “the update of the economic accounts for 2022, also recently carried out by Eustat, prompts us to point out that this slowdown is more pronounced than we initially expected. The positive reading that can be made is that the Basque economy has recovered from the level of GDP before the start of the pandemic in the second quarter of last year and is now two points higher.”
Source: EITB
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