The OECD confirms that Spain’s economy will grow by 2.1% in 2023, double that of the euro area as a whole. The institute has developed the GDP (Gross Domestic Product) forecast of our country and is equal to the Govt. By 2024, it predicts a growth of 1.9%, highlighting the developed countries as well.
Calvino: “The Spanish economy is experiencing a structural change due to the recovery plan”
“Low inflation and a resilient labor market will support domestic consumption,” explains the OECD panel of analysts, while “strong external demand, on the other hand, will support export growth. [incluyendo el ‘tirón’ del turismo]”.
As for inflation, the company sees an average below 4% this year, two points below the eurozone, mainly due to the drop in energy prices, “which favors the competitiveness of Spanish companies,” sources at the Ministry of Economic Affairs said.
In addition, the OECD believes that “improved prospects for demand will encourage private business investment despite rising financing costs” due to the European Central Bank’s (ECB) increase in interest rates.
“Fiscal policy is expected to tighten to deal with higher debt,” the firm’s economists continued. “As inflation eases, support measures to reduce the impact of higher energy prices should be phased out,” they opined.
Finally, “deployment of the recovery plan could stimulate significant public investment and increase growth potential.” The government this Monday approved the transfer of another 7,700 million euros to European funds, including 10,300 million for the ‘Repower EU’ program to invest in the energy transition, and a further 84,000 million in loans. European funds could potentially inject into the economy a total of 160,000 million.
“Continuing low productivity growth and reducing dependence on fossil fuels should be a priority,” the OECD concludes.