Funcas raises its growth forecast for the Spanish economy by half a point in 2023, up to 1.5%

He anticipates that Spain will reach its pre-pandemic level by the end of this year

MADRID, 17 Abr. (EUROPA PRESS) -

The Savings Banks Foundation (Funcas) estimates that the Spanish economy will grow by 1.5% this year, half a point more than the previous estimate, and forecasts growth of 1.4% in 2024, four tenths less, according to its economic forecasts for Spain 2021-2023 published this Monday.

"The behavior in 2023 will be somewhat better than anticipated and in 2024 it will be somewhat worse," explained the general director of Funcas, Carlos Ocaña, at a press conference to present the update of the economic forecasts for Spain for the period 2023-2024.

Ocaña explained that in 2023 the behavior of the Spanish economy will be "uneven", with a first semester in which higher growth rates will be registered than in the second part of the year.

Specifically, Funcas has anticipated quarter-on-quarter growth of 0.4% in the first quarter, 0.3% in the second quarter, 0.1% in the third quarter and the year would close with zero growth and then return to recover at the beginning of 2024. Despite this, Spain will be able to reach the levels of economic activity prior to the pandemic at the end of this year.

Among the factors that are playing in favor of the Spanish economy this year are the better behavior of energy prices, the full normalization of tourism and the better rate of execution of European funds. "All these factors are going to boost the economy, particularly in the first half of the year," Ocaña assured.

On the contrary, in the second half of the year other less favorable factors will gain more weight, such as the contractive effect of monetary policy and financial tensions. "This will lead to the behavior of the economy in the last two quarters of 2023 being less dynamic," Funcas pointed out.

In 2024 Funcas has cut its forecasts because a slowdown in domestic demand is anticipated due to these contractive elements mentioned and because the country's fiscal policy will no longer be able to be so expansive given the reactivation of European fiscal rules and in a context of rising interest rates.