The European Commission raised this Monday five tenths its Spain’s GDP growth forecast for 2023, up to 1.9%and cut his inflation estimate up to 4%four tenths less than expected in their latest projections.

The better behavior of the economy this year will be based on the recovery of consumption and the maintenance of investment, while there are “downside risks” for growth, related to the rise in interest rates and their impact on households with fixed-rate mortgages, and for inflation, due to possible higher-than-expected salary increases.

In its Spring Macroeconomic Forecasts, which update the calculations made in February, the Community Executive also forecasts that the Spanish economy will grow by 2% in 2024, with an average increase in prices of 2.7%, four tenths more than what provided.

The European Commission has revised upwards the growth forecast for Spain in 2023, practically doubling the growth of the European Union, in line with the revisions carried out by the main national and international organizations in recent weeks.

The Government has positively valued this announcement, an economic improvement that “will allow Spain to lead growth among the main economies of the euro zone for the third consecutive year.”