Spain | Higher costs for businesses

Summary

Although energy and borrowing costs may be falling, businesses will have other challenges to contend with in 2024, including the risk of changes in labor regulation and taxation.

Key points

• Key points:
• The last few weeks have brought welcome news for the Spanish productive sector, in the form of lower fuel prices. At the domestic level, there is now more certainty about the direction electricity prices will take thanks to the steps taken by the Government, investment to improve energy efficiency, increased supply of renewables, and persistently high gas inventories.
• If these lower energy costs take hold, GDP growth in Spain could be at least 0.5 pp higher than what the consensus view is currently expecting.

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