The Government cuts four tenths of its growth forecast for 2024 but promises to create 700,000 jobs

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The Government has sent its Budget Plan to Brussels, a document in which it carries out a downward revision of four tenths of the expected growth for next year. According to the Executive, the Gross Domestic Product (GDP) will advance 2% instead of 2.4% which until now was foreseen. At the same time, GDP this year will advance 2.4%which represents an increase of three tenths compared to the previous forecast.

The text, which was sent this Sunday by the Ministry of Finance and which was made public this Monday, emphasizes that Spain “will continue to lead the economic growth of the euro zone in 2023 and 2024.” And that next year’s downward revision is due “at the lowest projected growth“, in that same Eurozone.

In parallel, the Government promises to create in the period 2023-2024 “more than 700,000 full-time jobs and the unemployment rate will be below 11 percent.” And furthermore, “wages will continue to grow in 2024 driven by the gains in purchasing power and productivity derived from the structural reforms adopted.”

“Compensation per employee will grow at rates higher than those of consumer prices, so that workers will gain capacity purchasing power during the period 2023-2024″, adds the Executive.

The Budget Plan also contains the deficit forecast for this year and next, and at that point the Government anticipates that will not renew anti-inflation measures that expire at the end of the year. “The Spanish economy would register a fiscal effort of around 1 point, thanks largely to the lifting of energy measures in a context of greater price stability,” the Executive points out.

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