The agency forecasts that unemployment will drop to 12.1% in 2022 and that it will continue to fall, reaching 9.8% in 2025.
The credit rating agency S&P Global decided yesterday to maintain Spain’s rating at ‘A’ and upgraded the outlook for Spanish debt from negative to stable. In relation to the labor market, the agency forecasts that unemployment will fall to 12.1% in 2022 and that it will continue to fall throughout the projection period, reaching 9.8% in 2025.
S&P highlighted that the Spanish economy will also be affected by the war in Ukraine due to the increase in energy costs and the impact of the crisis on its main trading partners, which has led it to reduce its growth forecast for 2022 to 6 ,1%. Likewise, it forecasts that inflation will stand at 5.3% in 2022, falling below 2% in the following three years.
In addition, the rating agency pointed to inflation and a potential rise in interest rates by the European Central Bank as a risk, although it points out that the debt financing costs will continue to be lower than the current average cost of the debt as a whole. , which will make it possible to continue reducing the interest burden and reinforce the sustainability of the public debt.
In this way, the public deficit will maintain its downward path, standing at 5.5% in 2022 and falling to 3.8% in 2024.
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