2023-10-15 09:00:59
The rating agency Fitch Ratings has revised its growth forecasts for the Spanish economy by three tenths upwards compared to the previous estimate in June, so Spain will grow by 2.2% this year, while it has improved by one tenth its estimates for 2024, up to 1.7%. By 2025, it will rebound to 2%.
Then, as for more immediate growth, Fitch has assured that this has been supported by strong immigration and a solid recovery in tourism, among other factors. However, Fitch has predicted that economic activity will slow in the second half of 2023.
In addition, it has identified the political uncertainty after the July elections and the possibility of new elections as destabilizing factors that could delay the preparation of general State budgets in 2024.
In its general evaluation, Fitch has highlighted that among Spain’s strengths is the “firm downward path” of the public debt and its potential for economic growth in the medium term thanks to European funds and structural reforms.
In this sense, Fitch forecasts that the gap between income and expenses of public accounts will be 3.9% this year, 3.1% in 2024, and 2.9% in 2025.
On the negative side, the high structural unemployment rate and low labor productivity persist, as well as concerns about the sustainability of the debt due to the increasing cost of financing.
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