Better growth expected in Spain this year
Confidence expressed in the economy by national and international institutions
THE BANK of Spain has improved its growth forecast for the Spanish economy – upping its prediction for 2023 from 1.3% to 1.6%.
The statement came as government spokeswoman Isabel Rodríguez highlighted the European Commission’s (EC) finding that Spain would enjoy some of the highest growth in the European Union this year.
The EC’s prediction is more conservative than the Bank of Spain’s, with their report on Monday saying the country’s economy was set to grow by 1.4%. The national bank has based its figure on the stronger than expected financial data that came from the final quarter of 2022.
Director general for the economy and statistics at the bank, Ángel Gavilán said the economy had registered a ‘strong showing’.
And in the first quarter of this year ‘global economic activity is behaving better than predicted’. In Spain ‘activity is maintaining the same level of dynamism observed at the end of 2022’, he noted.
Additionally, consumer spending has picked up and the price of natural gas in Europe has come down.
Inflation is expected to be contained to 4.9% in Spain this year, he added.
Sr Gavilán also highlighted an increase in confidence in the economy.
Collective merit
Sra Rodríguez said that the good figures were deserving of ‘collective merit’ in the country. She noted that the EC had improved its forecast ‘because we have shown strength as a country’.
And Prime Minister Pedro Sánchez pointed out that, for the first time, Spain has created jobs in a global crisis – and now has more companies than prior to the pandemic.
Spain closed 2022 with 3,430,663 active companies, almost 70,000 more than in 2019, he noted. He valued the fact that there has been job creation, ‘especially in sectors linked to technology, information and high valueadded services’.
“We have to refute this catastrophism, the doomsayers who ultimately expect things to get worse when what we have to do is what we are doing now – exceed all expectations,” he stressed.
Spain has managed to establish its entrepreneurial ecosystem in the top 20 worldwide, with 14,000 startups registered in 2022, above the European average, he added.
EC’s assessment
In their forecast published on Monday, the EC noted that ‘Spain weathered relatively well the negative shocks unleashed by Russia’s war of aggression against Ukraine in 2022’.
The resilience of the economy was underpinned by the strong rebound in tourism over the summer season and dynamism of private consumption, also supported by positive labour market developments, they stated.
“Economic activity is expected to gradually pick up in the first half of 2023 and to gain further momentum in the second half of the year,” noted the EC.
“As inflation moderates, stronger private consumption and a further normalisation of tourism are expected to sustain activity throughout the year.”