Spain | Consumption Outlook. Second half 2022

Summary

Private consumption is mainly responsible for the slowdown in economic growth. The loss of consumer purchasing power, the rise in the cost of financing, the upturn in uncertainty and supply restrictions are conditioning the recovery in household spending, which will barely increase by 1.0% in 2022 and 0.9% in 2023.

Key points

• Key points:
• Bottlenecks, declining real household and business income and high fuel prices offset the positive effect of job creation on passenger car registrations in 2022, which will range between 820,000 and 870,000 units.
• The reduction in pent-up demand for passenger cars since March 2020 -helped by the easing of bottlenecks- and the decline in relative fuel prices could boost car registrations in 2023 to 1,000,000 units.
• The challenge of democratising the electric vehicle: by 2023, the market share of electric cars could be close to 25% if their accessibility and the capillarity of the fast charging infrastructure are improved and buyers' reticence about range and battery life is tackled.

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