Post by rojonirabeya1 on Mar 10, 2024 4:09:31 GMT
The Spanish economy tiptoes into 2023 , like someone who doesn't want the ground beneath them to creak. In 2022 he managed to save the furniture, despite the inflationary storm, the uncertainty derived from the war and the threat of a recession , but these economic threats continue to fly over the horizon and, in the meantime, it is time to pilot. Alleviating the bite of inflation with measures that do not inflame it even more, preventing the deterioration of the economy from cutting short the path of job creation or guaranteeing internal political stability in the midst of an external crisis are some of the 7 challenges facing the economy . that we analyzed in Business Insider Spain . Getting around them will not be a bed of roses. Blow and Sip: How to Relieve Inflation Without Feeding It Inflation crisis in households REUTERS/Alkis Konstantinidis SEARCH "POVERTY GREECE" FOR THIS STORY. SEARCH "WIDER IMAGE" FOR ALL STORIES. TPX IMAGES OF THE DAY Important for: Rampant inflation is putting a hole in the pockets of Spanish households.
but the measures approved to alleviate the bite could be counterproductive. By encouraging consumption, these measures add more fuel to the fire of inflation , as the International Monetary Fund has warned : "Applying fiscal stimulus in the current environment of high inflation would force central banks to brake even more abruptly to contain inflation". This is the case, for example, of the 20 cent discount on gasoline , which has been partially eliminated precisely for this Asia Phone Number List reason. But this is also the case of the VAT reduction that has just been approved. Key to follow: In the coming months it will be key that the measures approved or extended by the Government take into account their possible impact on the evolution of prices. "The IMF has pulled us by the ear a lot in that sense. It cannot be that what monetary policy tries to eliminate, fiscal policy tries to stimulate with coffee-for-all measures , such as bonuses or VAT reductions , for example," warns María Romero, managing partner of Economics at.
The IMF recommends "moving away from broad-based support to assist the most vulnerable, ideally through targeted cash transfers." This is something that the Government has begun to do with more surgical measures, Romero clarifies, but we will have to see if it is maintained, especially in an election year in which expansive policies tend to prevail. War against inflation: Do the measures announced by the Government work? Shopping carts Political stability in the midst of the crisis Pedro Sánchez in the Congress of Deputies. Pedro Sánchez in the Congress of Deputies.Pablo Blazquez Dominguez/Pool via Reuters Important for: This 2023 there will be elections twice. On May 28, the regional and municipal elections will take place, and at the end of the year the general elections will be held . New Governments are elected throughout Spain in a crucial year for the economy, where unknowns are raining down on all fronts. Key to follow: Election years tend to be periods in which politics usually comes before the economy.