Economists predict that Spain will enter a recession next winter

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The data of second quarter GDP preview published by the INE, which advanced a growth of 1.1% compared to the start of the year, above expectations, the expectations of the General Council of Economists regarding the behavior of the Spanish economy in the year as a whole have not changed. Economists maintain their forecast that the Spanish economy will grow by 3.9% in 2022 and that it will slow down significantly in 2023 to 1.7%-1.8%, largely due to their forecast that Spain will enter into recession next winter with negative quarter-on-quarter growth in the final stretch of 2022 and the start of 2023.

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According to his forecasts, Spain will not avoid the threat of recession that hangs over the vast majority of developed economies for next winter due to the more than probable closure of the Russian gas supply and also due to the effect of interest rate hikes that the world's major central banks have initiated to bring inflation under control. The General Council of Economists has not yet estimated the impact that this technical recession -it is considered that way when two consecutive quarters of negative quarter-on-quarter growth are linked- may have on employment, but its weak growth forecast for 2023, which is in the lowest range drop in welfare institutes predicts that it will have a significant effect on the performance of the Spanish economy next year.

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