Economic Growth & Inequality
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The high levels of public debt that have been building up since 2020 and the need to lower this burden have prompted a debate on fiscal rules relating to national accounts, aside from the matter of Europe approving common financing instruments to address the big strategic challenges that lie ahead.
Once the last reform decision did not restrict the increase in spending and did not eliminate the actuarial imbalance, the sustainability of the pension system will involve a constant increase in taxation and transfers from central government, increasing the burden on the younger generations.
The forecasts of the Stability Program point to a fairly strong recovery, with GDP growth above potential, but the public accounts suggest a cyclical improvement of the deficit rather than its structural component.
The potential effects of the war between Russia and Ukraine on Spain's autonomous communities are not uniform — the impact could be worse on the northern regions and less severe on the Levante coast and the islands.
The Government's forecasts in the Stability Program should make it clear that economic recovery will not be enough to consistently reduce the public deficit. Everything points to part of the expenditure having taken a structural leap and that the historically high level of tax revenue is only temporary.
An incomes pact is necessary, though difficult to implement. It is essential that the Government should broker a wide-ranging social agreement that helps control inflation, protects the most vulnerable and is as inclusive and transparent as possible, to ensure we do not lose competitiveness and to prevent social discontent.
Press release | In 2019, there were areas of opportunity in the financial health of Mexicans; in 2020, the Covid-19 begins; in 2021, inflation increased; and in 2022 the conflict in Ukraine adds new pressures to inflation. Therefore, in the following vacations, you have to take care of your physical and financial health.
China’s domestic uncertainties particularly the Covid-19 situation dominate external uncertainties as the main risks for growth. Two Sessions sets growth target at 5.5% and promulgated the stimulus package for 2022 to support growth which is unsynchronized with main central banks’ tightening measures.