Spain – 2022-2023 scenario: Households squeezed by inflation

Spain – 2022-2023 scenario: Households squeezed by inflation
  • Summary
  • Recent economic trends
  • Outline of our scenario
  • Focus: trend in inflation

En résumé

After rising 2.2% in Q4 2021, Spanish GDP increased 0.2% in Q1 2022. The effects of more persistent and more intense inflation in Spain than in its neighbouring countries and uncertainty over the duration of the conflict and the restoration of the orderly functioning of supply chains led us to revise our GDP growth forecasts downwards. They indicate growth of 3.8% in 2022 and 1.6% in 2023, which are lower than our forecasts made in the last fiscal year (4.6% and 3.6% respectively).

Spain – 2022-2023 scenario: Households squeezed by inflation

The battle against rising prices in Spain began a year ago. On 25 June 2021, the executive announced the first decree of measures to mitigate the rise in energy prices, which was then focused on electricity prices. Then, in the autumn, he proposed measures to contain the rise in wholesale prices. On 29 March 2022, the government launched a plan against the effects of the war, which included a gas subsidy of 20 cents per litre as the main measure. With the current decree, all the measures of these plans will be extended.

Ticiano BRUNELLO, Economist