The Minister of Finance, Maria Jesus Monterostated this Monday that “it is possible let it stay short“the forecast of 4.4% growth for this year that the Government calculated at the beginning of October. He has also maintained that the fourth trimester is being good and will have a “drag” effect in the first of next year, with which the Spanish economy would not go into recession.
“We have some realistic public accounts that will allow us to face the year 2023 in a much more effective way and that will move away of that possibility of recession that some countries are experiencing”, he defended during the debate on the budget project of the State for the next financial year held in the plenary session of the Senate. Thus, he highlighted that the Executive calculates a growth of 2.1% in 2023with which Spain would grow more than the other big countries of the euro zone for the second year. .
The consensus of private analysts prepared by Funcas points out that the economy will grow a 4,5% this year and a 1,1% the next. He too Bank of Spain and the European Comission calculate an expansion of 4.5% in 2022 and growth much lower than that forecast by the Government next year (1.4% and 1%, respectively), in line with the estimates of the International Monetary Fund (4,3% y 1,2%)
prudent and reasonable
The minister also confirmed that the Government is “finalizing the last package of measures (to alleviate the effects of the invasion of Ukraine on inflation) focused on the effort for the middle and working classesin the people who are vulnerable and in the sectors that are going through the most difficulties”. In this sense, he recalled that the Executive sent to Brussels two possible scenarios of income and expenses and that the second scenario contemplates a higher collection in some 10,500 million of the initially estimated that “will give margin to extend and adopt those measures that are deemed appropriate”.
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Montero, thus, has argued that the public accounts project includes a “prudent” forecast increase in tax revenues of 6% and has maintained that most of it is due to the improvement of activity economy and employment, and not to inflation. He has also asserted that the execution of the European funds is going “at a reasonablealthough it can always be improved.
He has also defended that the budgets seek to “help” Spanish society to overcome the effects of the invasion of Ukraine and the Russia’s “energy blackmail”, “with a very clear focus” on the lower and middle classes, compared to those who “have spent too long leading to a cataclysm that has not finished taking place.” It is a question, he has assured, of promoting a “fair distribution” of the costs of the debt, and at the same time advancing in the transformation of the economic model.