The growth of the Spanish economy will reach 1.7% this year, an expansion four tenths of a percentage point higher than previously estimated by the Organisation for Economic Cooperation and Development (OECD).
This figure represents a significant slowdown compared to the 5.5% in 2022, but places Spain among the advanced economies that will grow the most in 2023 and more than double the 0.8% estimated for the euro area, according to the OECD.
Looking ahead to next year, the organisation’s new projections for the advanced economies maintain GDP growth expectations for Spain at 1.7%, in line with what was anticipated last November, which would place the Spanish economy, along with Germany’s, as the most vigorous among the main economies of the euro area, whose expansion in 2024 is estimated at 1.5%, reports Europa Press.
As for the evolution of prices, the OECD has revised down its inflation expectations for Spain and now expects the general rate to moderate in 2023 to 4.2%, six tenths less than previously estimated and below the 8.3% of 2022, while for 2024 it envisages a rise in prices of 4%, compared to the 4.8% it expected last November.
However, the organisation is less optimistic about the evolution of core inflation, which excludes the impact of energy and food, as it has revised its forecast for this year upwards by two tenths of a percentage point to 5%, compared with 3.8% in 2022, while for 2024 it maintains its expectation at 3.7%.
In this way, Spain’s general inflation rate this year will remain well below the average for the euro area, estimated at 6.2%, although for 2024 the OECD forecasts that the rise in prices among the Twenty will be less intense than in Spain, with an average rate of 3%.
Likewise, while this year core inflation in Spain will be slightly lower than the 5.2% estimated for the euro area, next year the Spanish figure will be seven tenths of a percentage point above the euro area average of 3%.