The Bank of Spain warns of the coming economic slowdown and high inflation for longer

• The industrial break predicts an economic and employment slowdown: "The risks of recession have increased"

In its first public assessment of the economic situation after the summer, the

confirmed on Monday the negative prospects that haunt the country, warning that in the coming quarters

and that the country will have to deal with

than expected.

"

, penalized by the same headwinds that affect global and European economic forecasts (inflation, uncertainty, energy crisis, tightening of financing conditions...)," warned

General Director of Economy and Statistics of the supervisor, who also foresees "

The institution has highlighted the strong economic growth that Spain has experienced in the second quarter, of 1.1%, but even so, it has recalled that this has not been enough to get the country to recover the level of activity prior to the pandemic.

, with data at the end of the second quarter, unlike Germany -which has already reached that level- or France or Italy -which have largely surpassed

By components of GDP,

is the one that is still farthest from the levels of 2019, while in the Eurozone they have already been exceeded;

followed by

-which also in Europe remains below pre-pandemic levels, weighed down by inflation- and

-this Monday it was known that the arrival of foreign tourists this year has been equivalent to 90% of that received before the pandemic, with which 10% of travelers still need to be recovered.

Yes, it has recovered and even exceeded the pre-Covid level in total investment, exports of goods and services and imports of goods, the institution led by Pablo Hernández de Cos has pointed out.

Employment has not yet recovered

has largely recovered in the

number of workers -Spain has exceeded 20 million affiliates this year-, although it is true that measured in

is

still

the 2019 levels.

With regard to the

, the institution focuses on the differential of more than one point that exists between the level of inflation in Spain and that of the euro zone and points out that in our country the sectors that are contributing the most to the rise of prices are

, to a much greater extent than in Europe.

The evolution of inflation will depend on external factors such as the severity of the

, points out the Bank of Spain, since "the Spanish economy would be materially affected by a

Although the impact would be less pronounced than that experienced in other European countries".

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