growth

There are some positive signals in 2023 Q3 GDP today, together with September economic indicators, suggesting the economy might pass the worst amid policy support.

This year, investment in Mexico has experienced notable growth. Between January and July, it grew 20% compared to the same period of the previous year.

Following a series of more aggressive 75 bp hikes at previous meetings, last week the ECB raised interest rates by just 50 bp, following in the footsteps the Federal Reserve and the Bank of England. In doing so, it is trying to strike the right balance, which is always difficult in times of stagflation as the current one.

Inflation has returned and has done so at rates not seen for decades in most developed economies. Spain has not remained unaffected by this episode of global inflation.

The economy showed less dynamism than expected. Private consumption and housing drained growth, while productive investment and external demand added. Hours worked barely grew, so most of the improvement in activity is attributable to productivity

The 2022 economic package reinforces the commitment to fiscal discipline. The forecast of higher tax revenue is supported by improved intake practices and streamlining actions with more fiscal oversight for the compliance of tax payments. The federal law of income does not contemplate creating or raising taxes.