Spain Economic Outlook
May 31, 2022Growth weakened in the first quarter, as household spending was weighed down by surging inflation and the spread of the Omicron variant. Turning to Q2, in April, a robust recovery in tourism likely underpinned the tertiary sector, as signaled by a higher services PMI reading, while the rate of unemployment fell and retail sales rebounded strongly. However, elevated inflation, downbeat consumer confidence and a softer expansion in manufacturing activity call for caution. Meanwhile, the European Commission recently warned of imbalances in the public accounts, with the independent fiscal authority lamenting the absence of a medium-term strategy to bring them under control. Furthermore, the Bank of Spain has called for additional reforms to ensure the sustainability of the public pensions system.
Spain Economic GrowthAlthough the pace of growth will ease this year, it should remain relatively solid. A recovering tourism industry and EU fund inflows should underpin the economy. While accumulated savings and rising employment will provide support to consumer spending, it will be restrained by elevated inflation. Rising interest rates and a weak fiscal position cloud the outlook. Our panelists now project the economy to grow 4.4% in 2022, down 0.3 percentage points from last month’s forecast, and 3.1% in 2023.
Spain Economy Data
5 years of Spain economic forecasts for more than 30 economic indicators.
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|Bond Yield||0.46||5.62 %||Dec 31|
|Exchange Rate||1.12||0.65 %||Dec 31|
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Spain Economic News
June 9, 2022
Industrial production expanded 2.4% year-on-year in seasonally- and calendar-adjusted terms in April (March: 0.0%).
June 7, 2022
The Spanish Board of Architects approved 10,899 new construction permits in March, according to data published by the Ministry of Public Works.
May 30, 2022
Retail sales expanded 3.3% year-on-year in April (March: -5.5% yoy).
May 12, 2022
The S&P Global Composite Purchasing Managers’ Index (PMI) jumped to 55.7 in April from 53.1 in March, reflecting a stronger services sector amid reduced Covid-19 restrictions.
May 11, 2022
Industrial production expanded 0.1% year-on-year in seasonally- and calendar-adjusted terms in March (February: +2.8%).