Bank of Spain blasts government complacency: “We are the great euro economy that has done the worst”


The agency says Spain is still far from returning to pre-Covid GDP levels, anticipates it will further lower its forecast for 2022 and asks that pensioners participate in the income settlement

Government chairman Pedro S.
The President of Government, Pedro Sánchez, and First Vice President, Nadia Calvio, in Congress this Wednesday.EFE
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Spain is far from recovering the level of gross domestic product (GDP) before the pandemic. As the Prime Minister Pedro Sanchez, Highlight, as he did in Congress this Wednesday, good employment progress; Tax collections are chasing historical extremes, as the Treasury has always exposed; Or that it is transferred from the Ministry of Economic Affairs that the economy is doing better than the GDP mark, the fact is that the context is clear. And what it shows, as the Bank of Spain confirms without a doubt, is that Spanish economy is behaving worse More than any of its other European peers since the crisis began because of the pandemic.

,Of the Euro’s great economies, we are the ones that have done the worst“, confirms the General Director of Economy and Statistics of the Bank of Spain, Gail GavilnyDuring the preliminary presentation of the body’s annual report published today.

“In the first quarter of the year, activity levels in Spain were 3.4 percentage points below those seen before the pandemic, while in the euro area as a whole, GDP was up 0.4 percentage points.” pre-crisis levels”, the document says. And Gavillon furthermore, announced that the BDE is going to proceed in June to further lower its forecasts for this year, which for now by the European Commission’s 4%. expects a return of 4.5%, given that the first three months have been years”severe recession,

The reasons for the submission of this delay by Spain are various and well known, beginning with “high load of tourism“Or in the Spanish Economy”Worst growth of private consumption“. This second point requires that “families have barely used the accumulated savings bag”, the agency says. . This savings”, while low-income households would release part of those funds, “may be due to the fact that rising energy prices affect this group more”.

Sparrowhawk, moreover, Did not share analysis done by economic ministries In that successive crises have changed the structure of the economy, that GDP is probably no longer recording economic conditions well and that the situation is better than that shown in the context prepared by the National Statistical Institute (INE).

In fact, he pointed out that yes, employment is getting better, although with large disparities by sector and restrictions derived from the pandemic, there may be more recruitment of personnel for similar tasks. He also pointed out that part of the increase in collections may be circumstantial, for example, as a result of an increase in inflation. And I ended up warning that in the past there have already beenSuch discrepancies have, over time, been corrected,

Labor Reforms, Inflation and Pensions

The person in charge of BDE was also alert on labor reforms. Or, at least, not as encouraging as Govt. He noted that “in recent months, permanent recruitment has accelerated and temporary recruitment has been reduced”, but added that “It is too early to assess the impact“Fixed.

On inflation, which he predicted, will also go MS All Dell 7%, explained that it is particularly affecting low-income families, those with low educational levels and those over 65 who are particularly vulnerable. And with regard to pension, he was clear in asking whether pensioners are part of the income agreement, i.e. Profits are not recalculated with CPIAs promised by the government.

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