Spain will not enter a recession in 2023 and will continue to grow above the euro zone over the next year. It will not reach its previous level until the beginning of 2024. for the pandemic, as predicted by the International Monetary Fund (IMF) this Friday.
“Spain is one of those countries where we don’t foresee a technical recession next year”, Alfred Kammer, Head of the IMF’s European Department, drew attention at the press conference held within the framework of the annual meetings of the Fund and the World Bank (WB).
For this reason even though some countries “will experience a complete recession” next year, the growth of many states, including “Spain will be stronger than other European countries”. Production is not expected to reach pre-pandemic levels until early 2024.
On the 11th, the IMF released the IMF’s latest global economic outlook report, which despite Spain will grow more than expected It will slow more than expected next year, thanks to the recovery in tourism and industrial production (4.3%) this year.
Total Lowered the eight-tenths growth forecast for 2023 to 1.2 percent, Although close to the Bank of Spain’s estimate of 1.4%, it is a much more pessimistic figure than the Spanish government’s estimate of 2.1% in 2023.
Still, as the deputy director of the Fund’s Research Department explained at a press conference after the report’s release, Petya KoevaBetter numbers “probably” for 2023 will be seen as the report is made without the latest economic data for the country being known.
Despite high inflation and global uncertainty, the Spanish economy grew 1.5 percent in the second quarter, four-tenths higher than expected, according to official data. Russian invasion of Ukraine.
At this Friday’s press conference, Kammer said that the downward revision of Spain’s 2023 growth forecast weakening demand due to tightening financial conditions. He also pointed out that such conditions and high inflation would weaken consumer confidence.
Spain, drawing attention to the representative of the Fund, “most affected by the epidemic‘ but also ‘it took a very strong political backlash to get out of the recession.’
The country will continue to grow above the Eurozone. this set of economies It will grow 3.1% this year (five-tenths more than previously forecast), but will suffer more than expected in 2023 and only advance 0.5% (seven-tenths less than predicted in July).