The Government will revise downwards the GDP forecast

The president of the Government, Pedro Sanchezassured this Monday that there will be a downward revision of the growth forecast for the Gross Domestic Product (GDP) for this year (currently at 7%) due to the impact of the war in Ukraine on the Spanish economy, although he has insisted that growth will continue to be “robust”.

“It is evident that Putin’s war in Ukraine is having an impact on the Spanish and European economy and that there will be a downward revision in Spain, Europe and the world. It is a certificationbut that does not mean that we are not going to grow”, the president stressed in an interview on the Antena 3 program ‘Espejo Público’, in which he left the review of economic growth forecasts to the second vice president and minister of Economy, Nadia Calvino.

Sánchez has underlined that Spain will continue to grow “robustly” and create jobs, with a figure that right now is around or exceeds 20 million Social Security affiliates. However, he has pointed out that there “threats and risks” on the evolution of the economy, including the war and its impact on energy prices.

Despite the rebound in the CPI, the president has pointed out that the forecasts of international organizations point to the current price situation is “temporary”then Inflation will predictably drop in 2023 to around 2%.

The head of the Executive has assured that he is not hiding behind the war “nor does he put hot cloths” on the economic situation, but he has considered it “clear” that 70% of the rise in the CPI is due to energy prices and that, he added, “has a lot to do with the conflict in Ukraine.”

Precisely to combat energy prices, he recalled that Spain is negotiating with Brussels to decouple the price of gas from that of electricity, which will result in a reduction in the electricity bill, and he hopes that this measure can be agreed upon as soon as possible. In the meantime, he has explained that he has launched a plan to respond to the crisis arising from the war worth 16,000 million euros and that we must continue working on the green energy transition, which “is the solution to end energy dependence”.

Sanchez has ruled out on the other hand a generalized tax cut like the one requested by the PP because that, he said, “is not credible, nobody in Europe is doing it and it is not a country project”. “We are making tax cuts linked to specific policies”, he said, and criticized the Popular Party’s position: “It is a classic, when it is in the opposition it announces tax cuts, and then when it comes to the Government it makes tax amnesties and raises more than 50 taxes on the middle and working class,” said Sánchez, who added that “the worst tax” that Spaniards bear “is corruption.”

Reopening of the embassy in kyiv and Debate on the State of the Nation

On the other hand, Sánchez has announced that “in a few days” the Spanish embassy in kyiv, closed in the early stages of Russia’s invasion of Ukraine, will be reopened as a sign of “commitment” to the Ukrainian people.

In this line, the head of the Executive has stressed the importance of the “unity” of action in the face of the conflict in Ukraine because “any element of division weakens” us all and has deepened the idea that “this war is not between Russia and Ukraine, but of Vladimir Putin against the values ​​that the European Union represents”.

The President of the Government has also advanced that in the next In the months of May or June, the Debate on the State of the Nation will be heldwhich would be Sánchez’s first as chief executive.

Sánchez has justified that despite the fact that this debate has not been held in recent years, both he and the Government have rendered accounts on numerous occasions in the Congress of Deputies, stressing that he is one of the presidents who has appeared the most.

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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