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There are five factors that suggest that the gap between Spain’s GDP and its pre-pandemic trajectory will steadily close through growth remaining above the historical average of 2.0%.

The Spanish economy continues to have the highest structural unemployment rate in the European Union, despite having managed to reduce it substantially in recent years. To curb it, improvements are needed on three fronts: greater supply and demand for employment and better matching between the two.

We recap the phases of the recent inflationary cycle and analyse the evolution of intermediate costs, which are decisive for containing the triggering of second-round effects and ensuring price stability.

Thanks to the effectiveness of the vaccines, the economy has experienced a strong revival and life is gradually returning to a certain degree of normality. But an event on the scale of the COVID-19 pandemic can have a lasting impact on the nature of economic activity. The extent of this impact will largely depend on our confidence, ability and willingness to return to pre-crisis investment and consumption patterns.

Markets remained affected by the supply shock in May, particularly in the euro area. In an uncertain geopolitical environment with mixed signals, markets welcomed the favourable signs of rapprochement between the US and Iran. As a result, May saw a reduction in oil prices and consequently a slight moderation in short-term inflation expectations.

According to the glimpse of the tax close published by the Ministry of Finance, tax revenues in 2021 were surprisingly strong and have exceeded the expectations set out in the 2021 General Government Budget, despite GDP growth for the year falling below the government’s expectations.

Employment in Spain has experienced rapid growth in recent years. The unemployment rate has also fallen sharply, but it remains one of the highest in the euro area. Can the labour market continue to support Spain’s economic growth?

We analyse the support measures for households, the productive sector and those aimed at reducing electricity bills designed by the Spanish government to alleviate the effects of high inflation in 2023.

The challenge for economic policy is to maintain the resilience of an increasingly complex, interconnected and uncertain economic system. As Keynes warned, the challenge lies not so much in developing new ideas as in escaping old ones, thus freeing ourselves from inherited mental frameworks.