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Vulnerable families in Spain are facing a 'perfect storm' with the highest inflation in 18 years (excluding 2022) and housing price increases tripling salary growth, according to BBVA Research experts.
BBVA Research indicates that the 'Iran war' (likely referring to broader energy market impacts) will disproportionately affect northern Spanish communities due to their higher energy consumption, leading to slower growth compared to southern regions.
BBVA Research projects a 2.4% economic growth for Spain this year, but anticipates an inflation rate of 3.8%, with housing construction expected to increase despite ongoing crisis.
They maintain their growth forecast at 2.4%, but warn that they would have raised it by two tenths if it weren't for the impact of the conflict. Read
According to BBVA Research, the foreign population in Spain contributes 1.5 percentage points to the country's GDP each year, positioning Spain as the EU country with the highest influx of foreign workers who compensate for the decline in the local workforce.