Goldman Sachs also reacted to the results of the 23J elections in Spain. gaining weight what they could mean for the economyActually. He described them as “inconclusive”, as neither the right-wing bloc (PP-Vox) nor the left-wing (PSOE-Sumar) had enough seats to form the absolute majority needed to appoint a president. However, they believe this factor will have “limited effects” on the country’s economic prospects and are keeping their GDP growth forecasts: 2.3% this year and 1.6% in 2024.
That’s one of the results the North American bank maintained in its ‘Europe Insights: Getting Out of the Recession’ report, released this Tuesday, a day after banks suffered dips in the Spanish stock market, but it slowed throughout the session. Experts, among others, attributed these to uncertainty. election results that open the door The possibility of reintroducing a left-wing government that maintains the special tax on banks.
From the business perspective, Spanish economy will remain strong “despite varying views on fiscal policy.” Mainly because “majority parties agree on the importance of meeting commitments with bailout funds” that the bank expects it to continue to grow. Goldman Sachs understands that the growth of the Spanish economy continues to increase due to its “limited influence” in the manufacturing sector and “continuous gains” in terms of the service sector.
European perspectives
In its report, the bank reminds that the euro zone economy has slowed down with a “significant and surprising drop” in the Purchasing Managers Composite Index (PMI), which fell 48.9 points in July. Growth prospects are falling due to an affected manufacturing sector and a services sector that is not having a good time. Thus, beingAttention” Compared to second-half growth, and lowered its third-quarter forecast to 0.1% and fourth-quarter forecast (from 0.3%) to 0.2%. Growth of 0.4% is expected, “slightly below” forecast for the full year.
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However, he is more positive in other respects and points out that “the fall in general inflation, the increase in wages and the increase in employment” will improve real household consumption. This “must cover the extra cost of mortgage rates“, on the rise. Goldman Sachs also confirms that inflation across the euro area is falling “faster than expected” and that Spanish inflation, which “tends to lead inflation in the euro area”, points to significant future declines.
Finally, it asks officials of the European Central Bank (ECB), which is expected to raise rates by 25 percentage points again, to maintain a “constructive view” of the economic outlook “given the current flexibility of the labor market”. He also asks the President. Christine LagardeTaking necessary measures to bring inflation below 2% as soon as possible and not excluding the possibility of a new score increase in September.