Link Securities| The Bank of Spain (BdE) yesterday published its quarterly report in which it released its new macroeconomic forecasts. Thus, BdE analysts now expect Spain’s Gross Domestic Product (GDP) to grow by 2.4% in 2023 (2.3%; previous estimate; 5.8% in 2022); 1.6% in 2024 (1.8%; previous estimate) and 1.9% in 2025 (2.0%; previous estimate).
As regards inflation, these analysts now expect inflation to average 3.4% in 2023 (3.6%; previous estimate); 3.3% in 2024 (3.4%; previous estimate) and 2.0% in 2025 (1.8%; previous estimate). For core inflation, which excludes unprocessed food and energy prices, they expect it to be 1.9% in 2024 and 1.8% in 2025.
For its part, the BdE expects the general government deficit to be 3.8% of GDP in 2023 (4.7% in 2022); 3.4% in 2024 and 3.6% in 2025. In addition, they expect public debt to GDP to fall in 2023 to 107% (112% in 2022), to 106% in 2024 and to rebound again in 2025 to 107% of GDP due to the higher government deficit.
