The Vice President and Minister of Economy, Nadia Calvinohas been convinced that the inflation it has already peaked or reached its peak as the data indicates, after going from 9.8% in March to 8.4% in April; and that it will go down until next year it will be around 2%. During a telematic intervention within the framework of the Gathered Cercle d’EconomiaCalviño has launched a message of optimism before an audience large of businessmen and managers and has affirmed that inflation is “the main concern” of the Executive and has insisted that the European and Spanish response to the impacts caused by the war in Ukraine it is the same as the one applied during the pandemic.
Throughout her speech, the head of the Government’s economic policy has highlighted the positive indicators on economic evolution despite the fact that the Executive has reduced its growth forecast for this year from 7% to 4.3%, after that different organizations, from the Bank of Spain to the Independent Authority for Fiscal Responsibility (Airef) or the International Monetary Fund (IMF).
Calviño recalled that a year ago, when he participated in this same forum, he announced that the country was consolidating its Recovery. Later, he added, we were surprised by the eruption of the La Palma volcano and, currently, the war provoked by Russia in Ukraine, he recalled.
Among the indicators that he considers most remarkable is the evolution of the investmentwhich “is recovering strongly” reached 2012 levels, “after a lost decade”. According to the First Vice President and Minister of Economy, for this financial year, the investment growth forecast is 9% and even 10% in some activities.
Employment
At the same time, it has also put on the table indicators related to the labor market, such as the fact that for the first time the 20 million Social Security affiliates, as well as the effects of the latest labor reform. Among these, he recalled that 47% of the contracts that were made in January continue today or the drop experienced in very short-term contracts. Or that around half of the contracts signed last month were of an indefinite nature.
In turn, he brandished the tax collection as another of the elements that reflect a good rhythm experienced by the economy. And he has highlighted that “more than 80% of the increase is due to economic activity.”
The first vice-president has admitted, in any case, that the uncertainty. In any case, as the Spanish economy currently has “a more sustainable growth pattern,” It has features that allow it to better cope with the shocks that may arise, he added. And one of the factors that helps make this happen, in his opinion, is the recovery plan, which not only talks about investments of up to 140,000 million “but also the reforms that are committed to human, technological or social capital.”
Addendum to recovery plan
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Calviño has confirmed during his intervention via the internet that Spain, alas that he has not been able to attend the meeting in person due to agenda reasons, will send an addendum to the recovery plan in the second half of the year to add to the resources of ‘Next Generation ‘ non-refundable, about 69,000 million, a similar amount in credits. Despite the current situation, the vice president has defended that in 2025 the public deficit will be below 3%, as has been included in the update of the stability program sent last week to the European Commission.
Calviño has insisted on the importance of European ‘Next Generation’ funds, in his opinion, a sign that Europe has faced this crisis in a very different way from that of 2008; he has recalled that Spain continues to lead its execution. In fact, last week they asked for a second installment of 12,000 million. And within the State, Catalonia is the second community that has received the most, Calviño stressed. Before concluding, he assured that in the coming weeks new calls for transformation projects (perte) will be published that can use European funds, including that of the agri-food industry, which will be “before the summer”.