The report said that weaker price pressures and an acceleration in the implementation of projects related to the Resilience and Resilience Facility, among other factors, will help Spain’s economic activity. The house continued to grow for the rest of the year.
According to a report by the Spanish central bank, Spain’s GDP is expected to grow by 2.3% this year. The projected average annual growth rates for 2024 (2.2%) and 2025 (2.1%) are quite similar to the 2023 rates. However, uncertainty surrounds the economic outlook. The macro economy in the short and medium term is still quite high, it noted.
However, the uncertainty surrounding the macroeconomic outlook of the Spanish economy in the short and medium term remains quite high.
Throughout the year, the rate of change in consumer prices has fallen sharply in Spain. This decline, which mainly affects the energy component, is more pronounced than in the euro area, partly due to the regulations that determine how retail electricity prices are set in Spain.
The projected average annual growth rates for 2024 (2.2%) and 2025 (2.1%) are quite similar to the 2023 rates. However, output growth will mainly be supported. by the recovery of private consumption and less by the contribution of external net demand, the main driver of growth this year, the document said.
The recent deceleration in core inflation will continue in the coming months. Core inflation is expected to stay at 4.1% in 2023, before falling to 2.1% in 2024 and 1.7% in 2025.
Meanwhile, headline inflation is expected to average 3.2% this year. By 2024, it will increase to 3.6%, mainly because most of the measures implemented by the government to combat the effects of rising inflation will cause the growth rate of the energy component to accelerate. . , the central bank document said.
However, under the assumptions of the forecast exercise, headline inflation will continue to decline in 2025, decelerating to 1.8%.
In the first quarter of this year, the country’s GDP grew 0.5% compared with a 0.1% decline in the euro area.
Fiber2Fashion (DS) News Desk
