[런던=뉴스핌] Correspondent Jang Il-hyeon = Spain is expected to achieve the most remarkable economic growth among the world’s major developed countries this year, the British daily Financial Times (FT) reported on the 29th (local time).
Citing the results of a survey of economists by forecasting company Consensus Economics, the media said, “Spain’s gross domestic product (GDP) growth rate this year is expected to reach 2.7%.”
It was analyzed that the growth of the Spanish economy was due to increased tourism, foreign investment, and public spending.
Prior to this, the International Monetary Fund (IMF) predicted in its World Economic Outlook report on the 24th that the Spanish economy would grow by 2.9% this year. This is higher than the US growth rate (2.8%). Spain’s economic growth is overwhelming compared to other European countries.
In the IMF forecast, the UK and France were predicted to grow by 1.1% each, and Germany’s growth was predicted to stop at only 0.0%. Italy was 0.7%.
The Eurozone as a whole was expected to grow by 1.2%.
The Financial Times said, “Spain, the fourth-largest economy in the Eurozone, is showing a different picture from the sluggish growth experienced by other European countries.”
“We can say that Spain is living a special moment,” said Spanish Prime Minister Pedro Sánchez. “Our country is experiencing great success.”
There is also criticism that Spain’s growth is mainly due to increased public spending, and that GDP per capita is growing slower than headline GDP.
“Increased government spending, including support related to the coronavirus pandemic and public sector jobs, accounts for 59% of this growth,” Savings Bank Foundation Funcas said.
Funcas also said, “Over the past three years, 700,000 immigrants have entered the labor market,” adding, “They are mainly engaged in low-skill, low-wage jobs.”
“Someone should be concerned if growth is based on unsustainable public spending in a country with a high debt-to-GDP ratio,” said Juan Bravo, chief economic officer for Spain’s conservative opposition People’s Party.
According to the IMF, Spain’s government debt amounts to 102% of GDP.
However, investors are paying attention to Spain’s positive aspects.
The Financial Times said, “The yield gap between Spanish and German government bonds is at its lowest level since January 2022.”
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