Spanish Economic Outlook

Abstract

Higher than expected GDP growth (1,1% QoQ) fueled, mostly, by the reopening of the economy. Inflation kept surprising on the upside and spreading around all the consumption basket. Economic activity is expected to slow down, penalized by the same headwinds that weigh on the global and European outlooks (uncertainty, energy crisis, tightening in financial conditions, etc.) High levels of inflation to persist for longer than anticipated.