Business
The Bank of Spain Raises the Increase in GDP by One-Tenth in 2022
The Spanish economy, the only one in the euro zone that has not yet recovered its level of activity prior to the pandemic, will row against the current of the rest of the countries of the Old Continent and will avoid technical recession in 2023. Until the end of the year, the Bank of Spain projects that unemployment will remain at 12.8%.
The Bank of Spain raises the growth of the Spanish economy. The entity has revised upwards its forecast for growth of the Gross Domestic Product (GDP) in 2022, up to 4.6%, one-tenth more than that estimated to date. At the same time, the agency has ensured that if the forecasts are met, the Spanish economy would avoid recession, according to the Quarterly Report on the Spanish Economy published on Tuesday.
However, the entity has lowered growth by one-tenth for 2023, to 1.3%, has reduced growth by two-tenths in 2024, to 2.7%, and has added that in 2025 that GDP growth will stand at 2.1% It will not be until the end of 2023 or the beginning of 2024 when the country’s economy will recover its level of activity prior to the pandemic.
In the fourth quarter of 2022 and the first quarter of 2023, the Spanish economy will expand by just 0.1%, and from March it will rebound due to the relief of inflationary pressures, the recovery of foreign markets, and the application of funds Next Generation.
In this way, Spain would row against the current of the main economies of the eurozone and would avoid a technical recession, due to its less dependence on Russian gas. Although, the Bank of Spain warns that “it is hasty to rule out any scenario in a context of such volatility”, since the projections are based on the assumptions that energy prices continue to fall and anti-crisis measures are extended, among others.
Born2Invest mobile application is bringing the most important business news from trusted sources to a single screen so you can stay on top of the market. The application is aggregating the most important and breaking news from relevant websites, the list is always revised and updated with new resources.
The Bank of Spain assures that the economy will rebound in the second quarter of 2023
Despite the fact that the rise in prices will be “persistent” in 2023, the inflation rate in Spain will slow down to 4.9% in 2023, 3.6% in 2024, and 1.8% in 2025, standing at the head of the European countries with less inflation, boosted by the lower price of energy in the country. Although inflation will moderate, the fall in food prices and core inflation will take longer to occur.
Regarding employment, the labor market has resisted in 2022, with growth in affiliation in the third and fourth quarters and an increase in permanent contracts. Until the end of the year, the Bank of Spain projects that unemployment will remain at 12.8%, rise one-tenth in 2023, and moderate to 12.2% in 2024, reaching 12% in 2025.
Lastly, the household savings rate has been reduced by inflationary pressures since the maximum reached in the second quarter of 2020, going from 25.1% to 8.5% and its future evolution will depend, to a greater extent, on the evolution of household and consumer confidence, as well as the rise in prices.
__
(Featured image by byrev via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in PlantaDoce, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
-
Cannabis1 week ago
Ireland: Legislative Committee Calls for Legalization of Cannabis and Decriminalization of Drugs
-
Biotech1 day ago
Dijon Biotech Company Inventiva Raises 348 Million to Complete Its Phase III
-
Business2 weeks ago
TopRanked.io Weekly Affiliate Digest: What’s Hot in Affiliate Marketing [Bovada Affiliate Program]
-
Business1 week ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [CryptoTab Affiliate Program]