Funcas has revised downwards its economic growth forecast in Spain for 2022, placing GDP at 4.2%, which is 1.4 points less than in the previous quarterly estimate, according to publishes the Savings Banks Foundation.
In addition, the foundation has spoken about inflation forecasts in a press conference, placing it at around 6.8%, with an increase of 2.2 percentage points compared to the last financial year (4.6%).
These changes are a direct consequence of the uncertainty generated by the invasion of Ukraine, as well as the unstoppable growth of inflation, which already reaches 9.8% in the month of March, the highest rate since 1985. Funcas argues that this scenario will reduce the disposable income of households by 16.7 billion euros and damage consumption.
For its part, Funcas insists that the figures will be more positive, but will still be lower than pre-pandemic levels, and estimate that GDP will end the year 2.5 points below 2019 levels.
Also, they expect inflation to peak between "this month and next month" and then begin to decline as a result of falling fuel prices, although it is important to mention that these forecasts could vary if the war is prolonged in time, since they have been made considering that it will not last beyond the second quarter of the year.
