Bottlenecks latest publications
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.
In the current global scenario, the general price level has lost stability. During the pandemic, supply was paralyzed, generating bottlenecks that caused prices to rise. In the region, central banks decided to increase interest rates to counter inflation.
The ECB and most central banks in developed economies have taken up the baton by setting an inflation target of 2%. This is an unenviable task: the only genuinely and uncontested effective tool at their disposal is interest rate control, which loses effectiveness the further inflation is from the set target.
The NextGenerationEU program should never have been perceived—or explained as—some sort of countercyclical fiscal policy. It is in fact an opportunity to take a first step toward a genuine transformation of the Spanish economy.
The sharp upturn in global and European inflation is raising questions in the business press and the general public about a problem we had forgotten about for many years.