Spanish Economy Set for Big Boom As Forecasts Improve

Winter 2023 Economic Forecast: EU economy set to avoid recession but headwinds persist. Image: Zerbor / Shutterstock.com.

The Bank of Spain has now revised their economic forecasts and are suggesting that Spain will now grow by 2.3% by the end of this year.

This is huge news for Spain as many countries are still struggling to cope with the long-lasting impacts that the Covid-19 virus had on the world and its economies when the world pretty much came to a halt with people not allowed outside.

While it is still good news that this forecast has been improved by the Bank of Spain, overall, the next few years are still expected to be difficult times for people and also the government as they look to navigate their way through a tough period of time.

This is because over the coming years, the economy is set to slow down and only grow by 2.2% when the year 2024 comes around, but for now it’s looking to be brighter days for the Spanish economy.

Spain’s economy set to receive major boost

It’s a far more promising outlook from a financial perspective and the government and also local businesses will be hoping that the revised figures can continue to be a recurring theme because from 2024 and 2025 everything looks set to slow down once again.

The one thing that is said to have made the biggest impact and forced this revised forecast is the stabilisation of energy prices in Spain, however, things such as the general prices of groceries have also plummeted in recent times, much to the pleasure of the wider public.

Inflation must continue to fall

It’s not just this growth that is said to be huge news for Spain though as inflation is also at a brand new low for the country and according to the Bank of Spain, is now the lowest across Europe, with another drop of 3.2% anticipated later in the year.

Core inflation is still expected to fall by an impressive 4.1%, however, it’s not good enough to help economies get back to where they were at pre-Covid because financial experts are claiming this needs to be far higher for things to ever get back to a sense of normal and people aren’t watching every bit of money they spend.

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Written by

Aaron Hindhaugh

Qualified and experienced journalist covering all aspects of news and sport. Specialist in both Men's and Women's football with increasing coverage of golf and tennis.

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