Government forecasts inflation to fall to 2% in 2023

Calviño, who telematically intervened in the XXXVII Meeting of the Cercle d’Economia held in Barcelona this afternoon,increase in prices driven by ukraine waris currently one of the main concerns of the Government.

Thinking that inflation, which rose to 9.8 percent in March, has now reached its maximum level in the second half of the year, the minister said, “This is a concern that concerns us and that we must overcome as soon as possible.” It will be reduced. Its forecast is that it will be above 2% in 2023.

In this sense, he is convinced. Agreement with Portugal to separate wholesale prices Iberian electricity market will help reduce CPI.

According to the minister, despite the current uncertainty marked by the pandemic, the Russian invasion of Ukraine and the high cost of energy, the Spanish economy is showing great strength and continues to grow solidly and sustainably.

The government said, approaching economic policy on the basis of “maximum caution”“looking to the future” by engaging in fiscal responsibility, social justice and structural reforms.

In fact, thanks to the recovery plan, the arrival of Next Generation funds and this economic policy of the Government, “everyone expects Spain to maintain a strong growth rate in 2022 and 2023 above the European average and the main world economies”. Calviño noted with a growth rate of over 4%.

The vice president of economics said that this growth is in any case, “Much will be determined by factors such as the length of the war.the evolution of energy prices, the recovery of tourism or the speed with which the recovery plan is implemented.

“We have a clear roadmap, a recovery plan, European funds to make it happen, and the intention to capitalize on this extraordinary opportunity. We are confident that we will respond well to the challenges arising from this crisis.”

Looking back, the minister recalled that these two years were marked by the response to the pandemic, where the Government took “unprecedented” measures to protect the productive fabric, family income and employment.

All this led to The issuance of 140,000 million euros of public debt that we “started to receive”, Given that abuse of this response to the crisis “could weaken future generations”.

An example of how the Spanish economy has recovered more quickly from this latest crisis is the increase in investment and the creation of quality jobs thanks to the latest labor reform, with 1.8 million new permanent contracts since then.

Another indicator of the revival of the labor market is that there are 17.000 people covered by ERTE and the tax collection indicator is positive.