The deterioration of the economy is already filtered in the forecasts of the Government itself. The Executive has worsened by one tenth its estimates of GDP growth for this year and the next one to 2.6% and 2.3% respectively, and this is included in the budget draft that it will send to Brussels throughout the day. The Government today approved this extraordinary Council of Ministers this morning the document that will be sent to the European Commission including the agreements made with Podemos.
The higher taxes and expenses will result, in the eyes of the Executive, in a deficit target of 1.8% of GDP explained the Minister of Economy, Nadia Calviño, at the press conference following the Council.
The deterioration of the economy, in the words of Calviño, is caused by the deterioration of the external environment and the rise in the price of oil, which will bring less exports to the economy, so that the external demand will subtract one tenth of the growth from the contribution of 2.7 points of domestic demand.
Thus, the deficit reduction will be nine tenths next year, and for the first time Spain will reap primary surplus (excluding debt interest) since 2007. "The measures included in the draft will have a neutral impact on the real growth of 2019" , has affected Calviño. The structural adjustment, that is to say, beyond the growth will be of 4,800 million, that is to say, 0.4% of the GDP, as requested by Brussels, has defended the minister.