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GDP growth in Spain is maintained at 4.1% in 2022 and revised downwards for 2023 (1.8%). The main reason is the scarcity of some raw materials and the impact of their higher prices on inflation.
The aggressive monetary tightening, together with the likely fading of current supply shocks, will possibly manage to reduce inflation in the medium term, avoiding more negative macroeconomic scenarios. However, it will lead to a slowdown in demand and episodes of recession in the US and Eurozone.
The Spanish economy has been in turmoil for a couple of years now. Despite this, investment has already recovered to the levels of the 4Q2019 and even the purchase of machinery and equipment is 17% more than that observed more than two years ago.
La Rioja's GDP grew by 4.4% in 2021. But the war in Ukraine and sanctions reduce growth expectations. Thus, Rioja's GDP is expected to grow by 3.4% in 2022 and 3.0% in 2023. By the end of 2023, GDP per capita could be 1% higher than in 2019.
Despite the expectations created at the end of 2020, the Plan's impact on the National Accounts was slow in 2021 — though this is expected to accelerate in 2022 and 2023. The challenge now is to invest wisely in projects which will drive and transform the economy.
The inflation woes currently afflicting us are well known by now, as are the causes, consequences and all the risks they entail. The response so far, while well-intentioned, has failed to solve the underlying problem and more forceful monetary policy action is almost inevitable as we move forward.
Home sales have been rallying since the second half of 2020, yet supply is barely growing. If the factors behind the sector’s sluggish recovery are not promptly addressed, the resulting pressure will push prices even higher.
GDP growth in Spain is revised downwards to 4.1% in 2022 and 3.3% in 2023. The main reasons are the Ukraine's invasion, the sanctions imposed on the Russian economy and the increase in prices, especially energy related, over the last few months.