Monday, October 2, 2023

“In terms of growth, Spain is far from what the rest of Europe has recovered,” said an expert

The specialized analyst of the eToro platform, Javier Molina, gave his impressions about it in a report on September 12th Inflation rates in Spain and the development of the impact on the European economy.

In this regard, he said that the widely expected data confirmed concerns about rising inflation in the country. The report noted that headline inflation rose to 2.6% in August, a level not seen in some time.

Next to the Core inflation, which excludes volatile elements such as energy and food prices, also rose by a tenth to 6.1%.. This last piece of information revealed an even more complicated picture.

He said that: “In terms of growth, assuming the pandemic, we are still very far from where the rest of European countries have recovered. In any case, this is confirmed at the moment It is fuel that drives general inflation and it will be necessary to continue to monitor developments in the coming months as we will see that it will become increasingly difficult to reduce inflation and the Doubts about whether the ECB will raise or lower interest rates“.

Molina emphasized that the cause of the increase in general inflation is fuel prices. This situation posed a challenge as energy prices represented a difficult variable to control.

In addition, he pointed out that it is necessary to continue monitoring developments in the coming months, as inflation does not seem to want to let up.

What was interesting about his analysis was the mention of doubts about the future interest rate decisions of the European Central Bank (ECB). Would the ECB raise interest rates to curb inflation, thereby jeopardizing the economic recovery, or would it keep interest rates low despite rising inflation to stimulate growth? This question will be clarified over time to determine what the European Central Bank’s actions will be.

Nation World News Desk
Nation World News Desk
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