Funcas cuts its growth forecast to 0.7% in 2023, 1.3 points less

They estimate from the foundation that it is “possible” that there will be decreases in the Gross Domestic Product (GDP) in the last quarter of this year and the first quarter of next year, which will create a situation of “technical recession.” Of course they underlined this with a longer horizon than Funcas. “small” positive growth Compared to less promising prospects for other economies in the euro area, Spain (0.7%).

This was developed by the general manager of Funcas, Carlos Ocana and Raymond Torres, Director of the International Situation and Economy of Funcas, at a press conference to announce the update of the economic forecasts for Spain for the period 2022-2023.

Experts announced that the Spanish economy has weakened in recent months and the increase in prices has reduced prices. purchasing power Proportion of households that have already consumed a significant portion of the savings pad accumulated during the pandemic.

Although Funcas predicts employment levels will remain stable with 220,000 jobs created between the second quarter of 2022 and the fourth quarter of 2023, and wages will rise 3.5% next year – more than a point and a half. In 2022– this will happen”insufficientTo restore the purchasing power of families who will continue to lose capacity.

This is because given the current situation price raising sectionThe Fundación de Cajas de Ahorros projected an average inflation rate of 9.1% for the current year and 4.8% for 2023.

The forecasts of Funcas revolve around a scenario that predicts additional increases in interest rates to reach 2.5% in the coming period. second quarter of 2023but from then on they will remain without major changes.