! Spanish News Today – War in Ukraine drives Spanish inflation higher and lowers economic growth
Inflation in Spain is expected to reach 5.3% while GDP will grow at a slower pace
While the Spanish government itself will not update its forecasts until the end of this month, President Sanchez has already confirmed that “a downward revision to Spain’s GDP growth figures” is inevitable, while assuring that this “does not mean that Spain is not going to continue to grow.
On the other hand, the IMF estimates that Spain will be one of the European countries whose economies will experience the strongest growth this year and next year. However, this is also relative as Spain recorded the biggest economic collapse of any advanced country in 2020 and grew below the European average last year.
While no financial analyst is predicting a recession beyond the countries directly involved in the war, the IMF is clear that the conflict will contribute to a significant slowdown in global growth in 2022.