SPAIN will be one of the fastest-growing member States in the European Union between now and the year 2025, but will 'almost certainly' fail to meet the fiscal requirements established in the bloc in 2024, and is no longer the major economy with the lowest inflation.
The European Union has offered its forecast for Spain's economy between now and the end of 2025 (photo: EFE)
This is the latest economic diagnosis from the European Commission in Brussels, which forecasts a gross domestic product (GDP) growth of 2.4% by the end of 2023, largely triggered by consumer spending.
Next year will see growth fall to 1.7%, but it will pick up by 2025, reaching 2%.
Spain is one of the top four largest economies in the EU, along with Germany, France and Italy – but Spain is the only one which will experience growth of over 1.5% in the next two years.
In fact, Germany could even see a minor shrinking in its economy before the end of 2023, the Commission reports.
Eurozone inflation: Huge fluctuations, but not in Spain
Until this month, Spain had the lowest inflation of all the biggest economies in the EU, at under 3%, but has now lost its crown – prices have gone up again for the first time in over a year, leaving inflation in the country at 3.5%.
The cost of groceries – food and non-alcoholic drinks – is largely to blame, showing 9.4% inflation in Spain; down from its 10.5% in September, but still well above the current average of 7.5% in the Eurozone.
Food price inflation in Spain is the second-highest in the Eurozone, but the country's inflation overall has remained low compared with other common-currency States (photo: Flickr)
One of the member States where food prices have risen the most – only Greece has higher food inflation, at 10.4% - Spain has shown a different trend in the past few weeks from the rest of the bloc.
In the single-currency zone, inflation has been slowly falling, reaching a year-on-year 2.9% in October.
Read more at thinkSPAIN.com