A slowdown in growth that, according to Laboral Kutxa, would occur as a result of the effect of the interest rate increase. The entity also predicts that employment in Euskadi will grow by 1.1% in 2024.
Laboral Kutxa plans for 2024 growth retardation of the Basque economy, up to 1.4%as a result of the effect of the interest rate increase, with a employment increase of 1.1%. He is also confident that there can be an improvement in the industrial sector, which has been characterized by “weakness” since 2022.
Some forecasts presented in Bilbao by the Director of the Department of Laboral Kutxa Studies, Joseba Madariaga, and the Director of Business Development of the entity, Ibon Urgoiti.
They have highlighted that the end of 2023, both in Euskadi and Navarre and in the state as a whole, shows a “slight improvement” compared to previous forecasts and that this is expected in 2024 a gentle “deceleration” compared to this year, albeit in a context characterized by “very high uncertainty”, especially due to the geopolitical situation.
In the areas of the state as a whole, Euskadi and Navarra, they stood out the strength of the labor, consumer and services markets that support economic growth, so it is expected that in 2023 the GDP growth will be 1.7% both in Euskadi and Navarre, while in the state it is estimated at 2.4%.
According to the opinion of those responsible for Laboral Kutxa, the working market It will be one of the keys going forward and they believe that it will mark the development of interest rates in the sense that if it “deteriorates significantly”, something they do not foresee in principle, a drop in interest rates could take place. occurs in the first quarter of the year and if this deterioration does not occur, this decline could be postponed until the second half of the year. In Euskadi the entity estimates a increase in employment of 1.1% in 2024 and will end with a growth of 1.4% in 2023.
They have also pointed out that inflation rates are “declining”, but “still far away” from the “2.2%” desired by central banks “tariff escalation” They believe that it can be considered “completed”.
Source: EITB
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