Monday, April 15, 2024

Spain is on the up! Economy to grow better than expected this year – while the UK enters a recession

SPAIN will be the best-performing large economy in the eurozone next year after official forecasts for growth were updated.

The Organisation for Economic Cooperation and Development (OECD) now predicts that Spain’s economy will grow by 1.5% in 2024 and 2% in 2025 following a 2.5% growth last year.

Spain is the only country in the eurozone to see its growth forecast improved after the OECD revised official predictions. 

Inflation is also set to be better than expected this year after the OECD lowered the expected price increase in Spain to 3.3%.

The new figures provide Spain with a sunnier economic outlook in comparison to many of its European peers as the continent looks to bounce back from high inflation, spiralling energy prices, and the war in Ukraine.

Spain's Pedro Sanchez catches Covid-19 meaning he won't be rubbbing shoulders with world's top leaders at G-20 summit in New Delhi
Spain will be the best-performing nation in the eurozone this year, according to new forecasts

Growth for the eurozone is forecast at just 0.6% in 2024 and 1.3% in 2025.

Germany’s economy is expected to expand by just 0.3% this year, with their French neighbours not faring much better thanks to an official growth prediction of 0.6%.

Meanwhile, official figures released last week showed that the UK is in the midst of a recession.

The Office for National Statistics said the economy contracted by 0.3% between October and December last year, having already shrunk between July and September.

The UK is considered to be in recession if the economy fails to grow for two successive quarters. 

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