Fernández, María Jesús

Outlook for the Spanish economy in the wake of the energy crisis

Spanish GDP growth for this year has been revised upwards and is now forecast at a solid 4.5%. Within a context of high uncertainty, underpinned by geopolitical tensions, high energy prices and tighter monetary policy, downside risks are significant and economic weakness will be more tangible in 2023, with inflation possibly easing somewhat, though remaining stubbornly high over the projection period.

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Spanish economic forecasts for 2022-2023

Despite a weak start to the year and headwinds from high energy prices and double-digit inflation, Spain's prospects for the next few months remain favourable. However, after the end of the tourism season, the loss of consumers´ purchasing power along with more restrictive financial conditions and geopolitical risks mean growth is expected to slow considerably from the end of 2022.

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