The Organization for Economic Cooperation and Development (OECD) predicts that Spanish GDP will grow by 1.8% in 2024 and 2% in 2025, according to its semiannual Outlook report, published this Wednesday. Private consumption will sustain growth thanks to the resilience of the labor market and the increase in real incomes. At the same time, inflation is expected to decline to 3% in 2024, reaching values of 2.3% in 2025.
As for investment, this will continue to be weak in 2024, according to the OECD, but it is estimated that it will increase in 2025 thanks to the Recovery, Transformation and Resilience Plan (PRTR) that will advance in its implementation. In relation to foreign trade, this will remain moderate. Speaking of risks, on the downside they include the new escalation of geopolitical tensions, which worsens demand from Spain’s main commercial allies, and the slow implementation of the PRTR.
On the other hand, the OECD indicates that the fiscal deficit is decreasing, but considers it necessary to reinforce the fiscal consolidation planned in 2024 and 2025, in order for the debt to continue on a downward path and to achieve a margin for spending related to the aging of the population. population and the drive for growth. Slow productivity growth and low investment are factors that, according to the agency, seriously hamper Spain’s growth potential. As a solution to this problem, greater innovation is proposed, improving skills and competencies and promoting
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