Calviño affirms that the negative outlook for the German economy "is not good news" for Spain

The Government plans to send the budget plan to Brussels "in the course of the week"

MADRID, 13 Oct. (EUROPA PRESS) -

The First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, acknowledged this Thursday that the negative outlook for the German economy "is not good news for Spain".

"The European economy is highly integrated and Germany is one of our main markets," said the first vice president in statements to the media in Washington before participating in the G20 meeting.

According to German government estimates released this week, its economy is expected to enter a recession next year, with its GDP falling 0.4% and inflation running at 7%. In this sense, Calviño has warned that 'when Germany sneezes, Europe gets a cold' and has recognized that, at an international level, there is a climate of concern given the enormous complexity of the current situation.

However, even in this complex context, the Government's financial officer has stressed that all the organizations expect the Spanish economy to continue growing over the next year and has stated that some indicators reflect a structural change that means that it is in a particularly difficult situation. historically strong to meet the challenges that lie ahead in the coming weeks and months.

In fact, in the budget plan that the Government plans to send to Brussels in the course of the week, some structural changes will be specified and detailed, such as the impact of the improvement in the labor market and the rise of the underground economy.

"They reinforce the functioning of our markets and the capacity of the Spanish economy to face an economic slowdown", the minister emphasized.

Regarding the differences in growth forecasts for 2023 between the Government and other national and international organizations, Calviño pointed out that although "1.2% or 2.1%" is being talked about, all the estimates agree is that The Spanish economy will continue to grow in 2023 and will grow well above the surrounding countries and the European Union average.

"That is a message of confidence in the Spanish economy and the Government's economic policy, which is unequivocal and unanimous," he stressed.

Asked if he has received this week during his visit to the US any type of negative comment about certain government policies that go against what the IMF prescribes --such as salary increases for civil servants--, Calviño has denied that No criticism has been communicated.

On the contrary, he stressed that the economic policy of the Spanish Executive is absolutely in line with the recommendations of international organizations and described the agreement with the representatives of public employees as "very good news".

After the meetings she is holding in the United States this week, the vice president has affirmed that there is a consensus that a context of very high uncertainty is going through and has admitted that "great concern is noted" after the hardening of the tone with Russia .

"The economic impact of the war is becoming more and more evident and it is also especially damaging the emerging and more vulnerable economies," said the first vice president.

During the meetings he is holding this week, Calviño has reported that the message sent by the governors of the different jurisdictions, both the Fed, the European Central Bank and other central bankers, has been very clear regarding their determination to continue on this path of increasing interest rates in order to contain the rise in international prices as soon as possible.

The vice president has insisted that it is essential not to lose sight of the need to succeed in the difficult task of containing inflation "without thereby putting economic growth and job creation at risk".

With regard to inflation in Spain, Calviño has assured that the rise in prices has begun to moderate and has remarked that all forecasts point to this downward path continuing in the coming weeks and months.

However, the head of Economy has warned that all this is very subject to how international energy prices evolve in recent weeks. But the latest data shows that, despite Russia's gas supply cutoff, international gas prices have not skyrocketed, but rather have maintained a downward path and the same is happening with oil prices.

"We hope that the international energy markets will continue to decline so that they can help contain inflation," said the vice president.