The Government lowers the growth of the Spanish economy to 2.7% in 2023

The Government once again cuts the economic growth forecasts for Spain in 2023, which it reduces from 3.5% to 2.7%. This was the announcement made by the Vice President for Economic Affairs, Nadia Calviño, during the presentation of the spending ceiling for next year's General State Budgets. Despite the drop in GDP next year, Calviño stressed that our country will follow a path of "strong economic growth" that will be above the rest of the economies of the European Union.

Calvin already lowered the growth forecasts for the Spanish economy last Aprilwhen GDP growth was cut to 4.3% for this year -which is maintained for 2022- due to the impact of the war in Ukraine, compared to the 7% that was expected, while it lowered growth to 3.5% in 2023.

The economic vice president has maintained a positive discourse on the Spanish economy but has avoided giving GDP recovery dates as before the pandemic or inflation peaks, as she did in the revision of the economic forecasts in April. In fact, this time she has insisted that "the main challenge facing the Spanish economy at the moment is inflation."

There are four factors that, according to Calviño, support the fact that Spain will continue to grow at a good pace: the "excellent behavior of the labor market", the recovery of investment, especially "in capital goods and intellectual property due to the arrival of European funds" ; the favorable evolution of the foreign market, proof of the solid competitiveness of the Spanish economy“; and the good evolution of the public accounts.