The Organization for Economic Cooperation and Development (OECD) has forecasted that the Spanish economy will show positive growth this year, with an expected increase in Gross Domestic Product (GDP) by 1.8% in 2024. Along with lower inflation rates and a decrease in unemployment, this news is a welcome sign for Spain’s economic future. However, despite these positive outlooks, the OECD also provided recommendations to ensure sustained growth and compliance with new European fiscal rules.
To address these challenges, the OECD recommends measures such as increasing the Value Added Tax (VAT) and environmental taxes, improving productivity through educational enhancements and technology promotion, and revitalizing labor market policies to enhance job efficiency. The organization also stresses the importance of ensuring additional revenues for public coffers through expanding the VAT base and improving spending efficiency.
While the Spanish economy is expected to show strong growth in 2024, there are concerns about productivity, low investment, and demographic challenges affecting GDP growth in the long term. To promote sustainable growth in the future, the OECD suggests promoting innovation, improving education levels, and reforming the labor market.
On a global scale, the OECD predicts global GDP growth of 3.1% in 2024 and 3.2% in 2025, with declining inflation rates. While there are varying growth rates across regions