The lucid photo of the Spanish economy, which after improving forecasts in the first three quarters of the year is on track to register GDP growth of 3% this year without comparison in euro Europe, hides a handful of basic imbalances, which At the moment the figures do not dazzle but they do add concern to its future performance. The most obvious is the behavior of private investment, which experts consider to be the most solid basis for sustained growth of an economy and which in Spain continues to be just over 2% below the levels it had before the pandemic. .
The million-dollar injection of European funds from the Next Generation program has made it possible to mask the hole through public investment, but it has not been able to compensate for the sluggishness of private investment in the recovery phase of the Spanish economy. National analysts and international organizations are waiting for the reactivation of this indicator to clearly place their trust in the behavior of the Spanish economy, but this reactivation has not yet arrived.
And it could take even longer. The Institute of Economic Studies (IEE), the CEOE think tank, warned this Monday about the stagnation of business profits in the second and third quarters of the year and has warned that it could affect the recovery of investment as well as job creation, in which predicts a slowdown throughout 2025in which it would slow down according to its forecasts from the 2.2% expected this year to 1.7%, which would constitute the worst data in the last five years.
«Among the factors that may be conditioning the investment decisions of companies are the low profitability of the investment, the high national and international uncertainty, the legal and regulatory uncertainty, and the high and changing tax burdens«, emphasizes the report.
According to the IEE, the unit labor cost borne by Spanish companies has increased by 22% since 2019, driven both by salary increases and, above all, by regulatory costs, such as mandatory social contributions, which today are more than 20% above those in force in 2019, consolidating Spain as one of the European countries where companies pay the most social contributions.
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