A waitress clears a table at the terrace of a bar in downtown Ronda, southern Spain, May 4, 2022. REUTERS/Jon Nazca/File Photo
MADRID, July 26 (Reuters) – Spain raised its inflation forecasts for 2022 and 2023 and lowered its economic growth target for 2023, Economy Minister Nadia Calvino said on Tuesday, citing the war in Ukraine for its continued negative impact on European economies.
The inflation target was lifted to 7.8% in 2022 from a previous 6.1% projected in April, while for 2023 it was revised upwards to 2.9% from 2.2%.
Driven by rising energy and food prices, annual inflation in Spain surpassed 10% for the first time in 37 years in June, forcing the government to raise its expectations for consumer prices.
"The war is having major economic and social effects. All governments are revising growth forecasts downwards and inflation forecasts upwards," Calvino said.
Spain maintained its growth target for 2022 at 4.3%, partially helped by a strong tourist season leading to "strong GDP expansion" in the second quarter, she said.
The country's statistics institute is due to release second quarter GDP growth later this week.
For 2023, however, Calvino lowered the economic growth target to 2.7% from a previous target of 3.5%.
The downgrade came on the same day the International Monetary Fund revised its growth forecast for Spain down to 4% in 2022 from 4.8%. The IMF expects 2% growth in 2023.
The government also maintained its budget deficit targets for this year at 5% of GDP and 3.9% for 2023, Budget Minister Maria Jesus Montero said, as the fiscal straightjacket rules that set a 3% budget gap limit on EU member countries remain suspended. Spain expects a 3% budget deficit in 2025, she added.
The spending ceiling will be a record 198 billion euros in 2023, slightly more than this year, Montero said.
Our Standards: The Thomson Reuters Trust Principles.
Sri Lanka will ask Japan to invite the Indian Ocean island's main creditor nations, including China and India, to talks on bilateral debt restructuring as it seeks a way out of its worst economic crisis in decades, its president said on Thursday.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved


Shop Sephari