[Economics] The Government maintains that the economy will grow 2.1% this year

[#Wittels-]

The Government maintains that the Spanish economy will grow 2.1% this year, a forecast higher than those published by private analysts, public entities and international organizations that place growth for Spain in 2023 below 2%.
This is stated in the macroeconomic table included in the update of the stability program sent this Friday to Brussels, with which the Government estimates that it will be able to lower the public deficit next year to 3% of GDP, the year in which it estimates that the economy will grow 2.4% and the unemployment rate will close at 10.9%.
According to the note sent by the Ministries of Economic Affairs and Finance, the macro chart has been endorsed by the Independent Authority for Fiscal Responsibility (AIReF), although this institution expects economic progress to remain at 1.6% this anus.
The Government also maintains that the unemployment rate will close this year at 12.2% and that it will continue to decline in the coming years until it remains below 10% in 2026, a period (2023-2026) in which Spain will create 1.1 million jobs.

According to the document, the measures adopted to curb the increase in energy prices caused by Russia's war in Ukraine will facilitate the gradual return of inflation to its medium-term level.

In this context of price rise containment, the new macroeconomic framework forecasts that domestic demand will be the main driver of growth this year, especially household consumption, with an estimated growth forecast of 2.1% sustained mainly for the good evolution of employment.
In addition, the moderation of inflation will make it possible to improve business competitiveness, which will be reflected in the gain in market share of exports.

The foreign sector will maintain a slightly positive contribution to growth during the forecast period, with exports advancing 1.5% this year and 2.5% in 2024.
Likewise, the debt will obtain its reduction path after the decrease of five points last year, to absorb the impact of the pandemic and be below 110% of GDP in 2024, one year ahead of schedule.

MORE TAX MARGIN FOR THE AUTONOMOUS COMMUNITIES

The autonomous communities maintain a deficit target of 0.3% of GDP in 2023, within the 3.9% forecast for the administrations as a whole, but they are given a greater fiscal margin for 2024, since compared to the surplus of 0 .2% forecast in the previous stability programme, now a budget balance target of 0% is indicated, which means two tenths of a margin.
Local entities will return to budget balance in 2023 after having registered a slight short-term deficit in 2022 due to technical reasons when calculating the State compensation for the negative liquidation of 2020.
In this way, next year the objective of local corporations of 0%, compared to the surplus of 0.2%, will be foreseen in the previous path, with two tenths of a margin also.

Link: https://www.diariodebergantinos.com/articulo/economia/gobierno-mantiene-economia-crecera-21-ano-4271565