European Commission forecasts increase of inflation in Spain to 8.1 %

The European Commission made adjustments to its forecasts for the end of 2022 and raised the estimate of inflation in Spain to 8.1 % with growth of 4 %

The European Commission made new forecasts for inflation growth in Spain for this 2022, raising the forecast to 8.1 % compared to the 6.3 % estimated last May and maintaining 4 % for the growth of the Spanish economy at closing of the year.

The new economic estimates of the Community Executive are framed within an inflationary environment as a consequence, mainly, of the upward spiral of energy resources and the rise in the prices of raw materials due to bottlenecks in the supply chain as a consequence of the war between Russia and Ukraine.

The estimated figure for Spain is below the community average, which was estimated at 8.3 %. However, it stands out from the 7.6 % expected for the eurozone.

GDP rebound

In the estimates made by the European Commission, a rebound in the Spanish Gross Domestic Product (GDP) also stands out with respect to the average of 2.6 % forecast for the eurozone. Spanish GDP is estimated at over 2.7 % in 2022.

If the estimate for GDP is achieved, the Spanish economy would become the seventh economy in the area with positive economic growth, behind Portugal, Slovenia, Ireland, Croatia, Hungary and Malta and on a par with Greece.

For 2023, the Commission “estimates a rebound in Spain’s GDP of 2.1 %, up to 1.3 percentage points less than expected in spring and 2.3 % less compared to the forecasts at the beginning of the year” but the figure This is above the 1.5 % growth forecast in 2023 for the community average and the 1.4 % for the eurozone.

M. Rodríguez

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