Catalonia expects its economy to grow 1.4% this year

Barcelona (ACN).- Catalonia expects its economy to grow 1.4% in 2014. In its Macroeconomic Forecasts report published on Monday, the Catalan Government also predicts a fall in unemployment, which will be 21.7% this year. In 2015, the report expects the Catalan PIB to grow by 2.1% and unemployment to be below 20%, at 19.6%, a first since 2011.

The government forecast confirms the strength of the Catalan recovery. The economy in Catalonia has had positive numbers since the second quarter of 2013. The report, which is available online, says that domestic demand would be the main boost to growth, contributing  0.8%.

Catalan households will spend more money due to low inflation and better incomes related to the growth in employment. On the contrary, public expenditure will continue its decline following the fiscal consolidation efforts of the Catalan government.

External demand will contribute 0.6% to growth, with an important factor coming from exports, which will increase up to 5.6%. Imports will also grow, by 6.1%, and this will put the external balance at 0.1%, down from 0.8%. The situation in the labour market will also improve. Catalonia is expected to create 21.000 new jobs, a 0.7% increase, and unemployment will fall to 21.7% this year.

Positive forecast for 2015

This positive trend is forecast to continue in 2015, when the report expects the Catalan economy to grow by 2.1%, with domestic demand accounting for 1.2% of this increase. External balance would be 0.9%. In the labour market, Catalonia is forecasted to create 45.000 jobs, reducing unemployment to below 20% for the first time since 2011. In 2015, the government expects unemployment to stand at 19.6%.