The Minister of Economy, Commerce and Business, Carlos Body, announced this morning that The government will adjust its economic forecasts in response to the recent upward revision. carried out by the National Institute of Statistics (INE) on economic growth between 2021 and 2023.
In an interview for the program Espejo Público Antenna 3Corps explained that this revision responds not only to the most positive current data, but also to the recent update of historical data. The government’s projections, updated in July, estimate that growth of 2.4% for this year and 2.2% for 2025However, with the new data from the INE, it is likely that the Executive will adjust its economic forecasts upwards.
According to the revised data, GDP in 2023 reached 2.7%, two tenths more than the previous estimate. GDP growth in 2022 was adjusted to 6.2%, four tenths more, while in 2021 it increased to 6.7%, three tenths more. In addition, the INE revised downwards the decline in GDP in 2020, the year of the global economic collapse, which now stands at a contraction of 10.9%, three tenths less than the previous estimate of 11.2%. These criticisms reflected a a more robust economic recovery than expected after the collapse caused by the pandemic.
“It’s not going to be easy,” he stressed, despite the fact that the government “is focused on presenting the budgets.” Thus, he insisted, “we must have them approved so that citizens see their priorities reflected in the budgets.”
He stressed that it is a “complex and complicated” discussion with the different political parties, which is why he called on “everyone to be in this case with a positive and optimistic vision” so that the agreement can be reached.
Maximum growth
Body stressed that Spain has experienced higher growth than expected, with a faster-than-expected economic recovery from the pandemic. He also highlighted the progress in employment and debt reduction compared to GDP, as well as the increase in per capita income. These improvements, according to the minister, represent “good news” for the country.
In addition to the INE exam, The Bank of Spain recently updated its economic growth projections for 2024, increasing them to 2.8%.. This revision is in line with the estimates of the analytical consensus, which recently adjusted its forecasts for 2024 to 2.6%. Body stressed that, although the Bank of Spain has been late in its updates, its recent adjustment is in line with the general trend of the consensus and rejected speculation about the independence of the Bank after the arrival of former minister José Luis Escriva as governor.
These data show what the Minister has reiterated this week at the events he has attended, namely that economic growth, which was already considered strong and balanced, is now proving to be even more solid and sustainable, with an increase of one point in real terms.
Furthermore, it highlighted the fact that more jobs were created and growth was more responsible. “Our debt-to-GDP ratio has decreased further, our income per capita has increased further“In short, good news,” said the head of the Economy.
Budget 2025
Regarding the General State Budgets (PGE) for 2025, Corps highlighted the effort of the Executive to present new public accounts to Congress. Although the discussion will be complex, the minister called for maintaining a positive and optimistic vision to reach an agreement. If it is not approved, The Government will reallocate available budget items to minimise the impact on expenditure and investment.
“This discussion is not going to be easy.“We have already seen in the last year that this is a complex and complicated discussion, but I think we all need to have a positive and optimistic vision to reach an agreement,” he stressed.
Furthermore, on 15 October, the government will present the budget plan required by the new European budgetary rules, coinciding with the presentation of the budget plan.
Asked about the lower interest rates announced by the Federal Reserve, Corpo stressed that “this gives the impression that the cycle of rate cuts by the major central banks has begun,” meaning that they consider that inflation is “more controlled.” According to him, they are “very good news”also for “citizens and their daily lives.” Corps stressed that these measures represent “very good news”, both for the economy in general and for citizens in their daily lives. He mentioned in particular that the drop in the Euribor, which anticipates a possible further reduction in rates by the ECB, would offer significant relief to those who have to update their mortgages in the coming weeks. This reduction could translate into a saving of more than 600 euros per year for an average mortgage.
Youth unemployment, child poverty and housing
Despite the positive news about economic growth, Corps acknowledged that significant challenges persist, such as high youth unemployment, child poverty and the housing crisis. He stressed that Spain faces high youth unemployment rates and child poverty, which he considers unacceptable for the country, and stressed that the housing problem continues to be a major concern.
Earn less money as a minister
Regarding his salary, Corpus said he has no complaints about his current remuneration as a minister, which is public and transparent and is not among the highest in his ministry. He acknowledged having experienced a 30 to 40% reduction in your salary compared to his previous position at the independent authority, but he stressed that his professional motivations go beyond financial compensation. “Responsibility and professional interest are more important than salary,” he concluded.
