The Bank of Spain will in June revise its forecast for GDP growth for this year, estimated at 4.5% last April, and possibly even general inflation, which it calculated at 7.5%, this Monday according to Economy and Statistics. The general director has proceeded. of the Bank of Spain, angel sparrowhawk,
In the presentation in Seville of the Bank of Spain’s annual report for the 2021 fiscal year, Gavillán emphasized the need to reach an income agreement, which “actually already exists”, because Trade margin is part of the deficit and they’re about 4% and salary increase in agreement 2.5% on average, although he reported that “it would be nice to have it in writing”.
It has gone further that the Bank of Spain monitors inflation permanently and has acknowledged that Advance data from IPC, published today by the National Statistical Institute, which puts an annual rate of 8.7% in May, They were surprised to upload more than expected,
In this sense, he pointed out that an increase in underlying inflation (excluding energy and processed foods) and a fall reflected in the price of energy is producing “opposite” data on price developments.
In the context of this inflation, the Director General of the Bank of Spain has emphasized that an income agreement between unions and employers is necessary «Avoid an Inflation Spiral», since he said that “some policies go beyond the limits of governments to fight inflation”.
Although the Spanish economy is most affected by inflationary stresses as it is “particularly sensitive to energy prices”, Gavillán predicts that when “the disturbances go away, which will not be persistent, Spain will have lower inflation than surrounding economies,
Bank of Spain will revise GDP downward and possibly inflation as well