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.
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As we reach the end of the year, it's time to take stock of the last twelve months. We've seen that the best economic policy in 2021, was the rapidly rolled out, mass vaccination program. We have also seen that we can still create inflation — though this time most of it has come from the supply side rather than from demand.
The negotiation of the Spanish National Budget has restored the updating of pensions with the inflation for 2018 and 2019 and has delayed the entry into force of the Sustainability Factor (FS from its Spanish initials) until 2023. Although it w…