The Vice President of the Government does not rule out that Spain enters a technical recession during the coming year
A few minutes before the International Monetary Fund (IMF) announced its global economic forecasts, Nadia Calviño appeared in New York before the Spanish press to relativize the revision of the agency’s forecasts for Spain.
“The Spanish economy up to now continues to record strong growth and presents a series of elements of strength to face the challenges that lie ahead”, defended the economic vice-president of the Government. Those challenges abound – slowing global growth, war in Ukraineinflationary pressure, rises in interest rates, the energy crisis, problems in the supply chain- and Calviño acknowledged that the global economy, and also the Spanish economy, are under a thick shadow of uncertainty, a word that the vice president used on several occasions.
Calviño relied on it so as not to rule out the possibility that the Spanish economy could enter a technical recession (two consecutive quarters of negative growth), as could happen to a third of the world economy next year, according to the executive director of the IMF, Kristalina Georgieva. «The evolution of our economy in the coming months will depend substantially on how it evolves the war and the german economy», He acknowledged about that possibility.
Given the bleak outlook for the world economy, the difficult winters that are anticipated for this year and the next, and the volatility of the war, Calviño does not believe that the budgets that his government has just approved are risky. The Executive of Pedro Sánchez described them as “expansive”, and with a record in social spending, despite the incipient revision of economic forecasts and persistent inflation. “They are marked by prudence and fiscal responsibility, how could it be otherwise,” defended the vice president.
The tone of Calviño, who for the rest of the day had interviews with several US economic media to sell the strength of the Spanish economy, contrasts with the gloomy atmosphere in the IMF week and in world economic organizations. “The international financial markets confirm week after week the strong confidence in the economic policy of our Government and the resilience of the Spanish economy, even in such a complex international context,” he assured.
Faced with the pessimism that results from the IMF report, the vice president defended that “the future is not written” and that it will depend “on the economic policy measures that we put in place.” To do this, she trusted that during this week, which Calviño will dedicate to meetings with international economic organizations in Washington, “we take the appropriate measures to face the challenges.”
In a domestic key, he defended the recent wage increase for public officials, but did not confirm whether the Government will approve an increase in the minimum wage linked to inflation. “Between the end of the year we will make the decision that seems most appropriate to continue promoting economic growth and also the creation of jobs in our country,” he said.
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