In its summer economic estimates, the European Commission (EC) has revised up Spain’s gross domestic product (GDP) growth for 2023 to 2.2% from 1.9% in its previous estimate (5.5% in 2022). This revision is mainly due to the “higher than expected” carry-over effect of 2022 and the “solid” performance of the Spanish economy in 1H2023. Looking ahead to the end of the year and the beginning of 2024, the EC expects the Spanish economy to slow down, so it has revised down the estimated GDP growth in 2024 to 1.9% from its previous forecast of 2.0% growth.
With regard to inflation, the EC expects inflation to average 3.6% (8.3% in 2022), falling on average to 1.9% in 2024.
The Commission, in its new summer macroeconomic framework, revised downwards its expectations of Gross Domestic Product (GDP) growth for the Eurozone to 0.8% from 1.1% in 2023 and to 1.3% from 1.3% in 2024.
and to 1.3% from 1.6% in 2024. In its report, the EC points out that recent economic data confirm moderate activity in the region in 1H2023 and weakness at home due to higher inflation.
Regarding the latter, the EC expects inflation to continue to decline, to 5.6% in 2023 (5.8%; previous estimate) and to 2.9% in 2024 (2.8%, previous estimate).
