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Brussels' estimate for Madrid improves with 2.1% GDP growth
The European Commission improved the outlook for the Spanish economy for this year today, predicting a 2.1% growth in Gross Domestic Product (GDP).
© Lusa
Economia Comissão Europeia
The previous estimate from Brussels, released in February, predicted a growth of the Spanish GDP of 1.7% in 2024.
If today's European estimate is confirmed, the growth of the Spanish GDP will be lower this year than in 2023, which was 2.5%.
The growth of the Spanish economy this year will be supported by internal demand and the "continued resilience of the labour market", writes the European Commission (EC) in the economic forecasts for spring, released today.
The EC highlights, in the case of Spain, the impact of the application of the Recovery and Resilience Plan (RRP), with European funds unlocked in the wake of the Covid-19 pandemic, which should support the growth of investment throughout 2024 and 2025.
Brussels also expects a positive performance from tourism this year, one of the sectors with the most weight in the Spanish economy, as well as from exports of non-tourism services throughout 2024.
Along with a growth of 2.1% of the GDP, the EC predicts an inflation of 3.1% this year in Spain (one tenth lower than the 3.2% it estimated in February). Inflation in 2023 was 3.4% in Spain.
As for the unemployment rate, which in Spain is one of the highest in the European Union, it should stand at 11.6% this year, after being 12.2% in 2023.
The EC estimates, on the other hand, a public deficit of 3% of the GDP this year in Spain (it was 3.6% in 2023).
For 2025, Brussels predicts that Spain's GDP will grow by 1.9%, that inflation will be 2.3%, that the unemployment rate will fall to 11.1% and that the public deficit will decrease to 2.8% of the GDP.
In the document released today, Brussels says that Spain, along with Portugal, Ireland and Cyprus, are the only EU countries that are expected to have, in 2025, deficits lower than those they had before the pandemic, in 2019.
Read also: French GDP grows 0.7% this year and advances to 1.3% in 2025 (Portuguese version)
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