The First Vice President of the Government and Minister of Economic Affairs and for Digital Transformation, Nadia Calvin, has assured this Wednesday that the forecasts of the International Monetary Fund (IMF) for Spain “certify the vision” of the Executive that the recovery is accelerating in the latter part of this year and that it will be “more intense” in 2022, year in Spain will be the engine of growth both in the euro zone and in the EU.
In response to an interpellation in the Plenary of Congress by the PP spokesperson in the Lower House, Cuca Gamarra, Calviño recalled that the IMF has raised its growth forecast for Spain by six tenths for 2022 and stressed that “the evolution of all economic indicators “confirm that the government’s forecasts for this year and next are” extremely prudent and responsible, “especially with regard to tax revenues for 2022, for which an increase of 8.1% is projected.
The vice president insisted that the indicators published in recent weeks show that the recovery of the Spanish economy is going “from less to more.” “All the data confirm the incipient recovery in investment and the tourism data also reflect an acceleration in the recovery,” stressed Calviño, adding that the foreign sector will continue to contribute positively to GDP in 2021 and 2022.
He has also emphasized the positive evolution that employment is having, with a level of Social Security affiliates above that existing before the pandemic and the creation of 1.3 million effective jobs. “This evolution shows that the recovery is reaching the streets, where it matters most to citizens, jobs and wages,” he pointed out.
He also highlighted that the public debt will be reduced next year to 115% of GDP, which will mean that in two years the debt will have been cut by five points, compared to the three point decrease achieved by the PP Government in four years.
Calviño has underlined that 83.4% of the debt issuance program for this year has already been executed, that the debt profile has continued to improve, that the weighted average cost of outstanding debt has been reduced to 1, 66% and that the average cost of issuance as of September 30 reached -0.02%.
At the same time, he stressed that the State debt is increasingly long-term, since on average it has a life of 8.1 years compared to 7.6 years at the beginning of 2020. «This gives the Treasury a significant level of endurance. Each year in Spain approximately 12.3% of State debt is amortized and that allows us to delay over time the impact of a possible rate hike, “added the Vice President, who predicts that the weighted average cost of the debt will continue shrinking in the future.
The first vice president has also defended the “great confidence and enormous credibility” generated by the Spanish economy abroad and has asked the PP to abandon its “destructive” messages and get on the recovery train.
“Faced with the catastrophism of the PP, data and facts,” summarized Calviño, who also stated that both the reform of the labor market that is negotiated with social agents and the Housing Law project will be “balanced.”
«A new stick on wheels»
For its part, the PP spokesperson has warned that the budget project represents “a new stick in the wheels of recovery” for the Spanish economy, a “drag” on job creation and a “mortgage” for the self-employed, companies and workers, whom it has become “contributors to the service of the populist project” of the Government.
Gamarra has denounced that the macroeconomic picture of the Government “is already overcome” by growing international uncertainty, the “incompetence” of the Executive to stop the rise in the price of electricity and by the downward revisions of growth made by the INE and the IMF. In fact, the PP spokesperson has criticized Calviño’s ignorance that the IMF has cut its forecast for Spain by six tenths this year, to stand at 5.7%.
«What data from the IMF did you read yesterday? (…) Nobody believes your forecasts anymore (…) If you went out into the street you would find the data and the facts. I invite you to read the latest Caritas report, which says that since 2018 there are two million more Spaniards living in extreme poverty and what that means is that during this interpellation there are 30 more poor people in Spain. That is the real economy, the recovery that you speak of and that does not reach the streets. This is not catastrophism, it is the harsh reality of Spanish society ”, criticized Gamarra.
The ‘popular’ deputy has also accused the Government of generating an accumulated deficit of 300,000 million euros between 2020 and 2022 and of generating legal insecurity and mistrust among investors. “When legal uncertainty enters through the door, investment goes out the window,” he criticized.