Restrictions on consumption were important in the recession of the Basque economy

The Basque government considers that the relaxation of private consumption is important at this time to justify the slowdown of the Basque economy, which, although still in the growth phase, clearly reflects signs of low growth. The monthly ‘thermometer’ produced by the Basque government’s economic department, a synthetic index that uses one hundred leading indicators in its composition, reflected this slowdown by marking 84.6 points at the end of June, compared to 87 on May 7. Last March, the same index stood at 98.2, after leaving the intensive growth zone estimated to be above 100.

The data is in line with estimates made last year and points to a clear easing of the economy for this year, although some analysts estimate that the slowdown will be more severe and that the recession will reach the gates. Summer. The Basque economy grew at a brisk 4.4% last year, compared to the Basque government’s own forecasts for this year of just 1.6%. A recent study by BBVA Research is however more optimistic and projects 2% growth for the Basque Country this year.

“In addition to the moderation in private consumption observed in recent months, other reasons responsible for this small decline are public spending and less activity in investment. On the supply side, industry shows a certain slowdown in its growth, while construction and services show the same profile as last month,” the behavior of the Basque economy. A note issued by the Department of Descriptive Economics says.

Last June, the Basque government published its projections for 2024 and among them it clearly indicates a recovery of economic activity of 2.1%. A BBVA research study was more optimistic, pointing to a 2.6% growth, which would dispel doubts about the positive trend on the path to job creation.