In 2024, the Spanish economy is expected to show positive growth with a predicted increase in Gross Domestic Product (GDP) by 1.8%. This growth is accompanied by lower inflation rates and a decrease in unemployment. However, despite these positive projections, the Organization for Economic Cooperation and Development (OECD) has issued recommendations to ensure sustained growth and compliance with new European fiscal rules.
The OECD commended Spain’s efforts to control its deficit but expressed concern about the country’s high public debt levels. To address these challenges, the organization recommended measures such as increasing Value Added Tax (VAT) and environmental taxes, improving productivity through education enhancements and technology promotion, and revitalizing labor market policies to increase job efficiency. Additionally, the OECD stressed the importance of generating additional revenues for public coffers through expanding the VAT base and improving spending efficiency.
While private consumption is expected to drive strong growth in 2024, concerns exist about productivity, low investment, and demographic challenges affecting GDP growth in the long term. To support sustainable growth, the OECD recommends promoting innovation, improving education levels, and reforming labor markets.
On a global scale, the OECD predicts global GDP growth of 3.1% in 2024 and 3.2% in 2025 with declining inflation rates. Despite varying growth rates across regions
