Brussels lowers its GDP growth forecast for Spain in 2023 to 1%

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Brussels (EFE).- The European Commission this Friday lowered its forecast for Spanish gross domestic product (GDP) growth in 2023 to 1%, more than a point less than it had calculated there a few months, but estimates that the technical recession in a year when inflation will fall to 4.8%.

The new economic forecasts of the Community executive forecast in particular a contraction of 0.3% in the last quarter of this year and a rate of 0% in the first three months of 2023, thus avoiding a chain of two negative quarters, which would mean a technical recession.

On the contrary, Brussels raises the GDP expansion projection by half a point this year, from the 4% announced in July to the 4.5% included in the document presented at a press conference by the Commissioner for ‘Economics, Paolo Gentiloni.

The EC thinks the euro zone will fall into recession

The European Commission expects the eurozone economy to fall into recession in the last quarter of this year but expects it to end 2023 with growth of 0.3%, more than a point below its estimate in the summer, according to the fall macroeconomic forecast data released on Friday.

An Opel assembly line in Zaragoza, in a file image. EFE/Javier Onion

Brussels is also revising its inflation projection for next year upwards by more than two points to 6.1%.

In 2022, GDP growth in the single currency area will be 3.2%, six tenths above what was expected in July thanks to a better than expected first half and despite the fact that the economy will contract already 0.5% in the fourth quarter, while inflation will peak at 8.5%, nine tenths higher than the last projection.

For the European Union as a whole, Brussels anticipates a similar trend: it raises its growth forecast by five tenths for this year, to 3.3%, and the drop by 1.2 points for the next, to 0, 3%, while revising its inflation forecast. up by one point for 2022, to 9.3%, and by 2.4 points for 2023, to 7%.

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