España | Situación Castilla-La Mancha 2022

Summary

The GDP of Castilla-La Mancha could grow by 4.8% in 2022 and 4.7% in 2023. If the forecasts are fulfilled, Castilla-La Mancha could recover the pre-crisis GDP level in this semester. Between 2021 and 2023, 86,000 new jobs could be created. The short-term bias will depend on the impact of the geopolitical and sanitary risks.

Key points

• Key points:
• Improving goods exports, consumption and a good tone of affiliation boosted the recovery in 2021. It is estimated that GDP could have risen by 4.9%.
• The external goods sector and employment have been more dynamic than in Spain as a whole. But the recovery in consumption and tourism is weaker than in Spain. Moreover, investment in equipment and industrial activity are also somewhat slower, affected by uncertainties, supply problems, bottlenecks in international trade and the prices of energy and raw materials.
• In 2022, GDP growth is projected at 4.8%, while in 2023 activity could increase by 4.7%. The control of the pandemic, the use of households' pent-up savings, a boost in the execution of NGEU funds and high spare capacity would offset the effects of bottlenecks and higher energy prices.
• The near-term bias will depend on the impact of the realisation of geopolitical risks and the progression of contagion. Risks associated with higher inflation, central bank response and geopolitical risks are starting to gain importance. In addition, the implementation of NGEU-related funds needs to be accelerated. In the medium term, the bias will depend on the reforms to be adopted in the coming months.

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