Europe's piggy bank is empty and threatens to drag down tourism this summer

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The Spanish economy is in full swing, but could cool down in the second half of the year. It all depends on what happens with consumption, especially in the summer months. "We do not believe that the ebullience and joy with which we are starting the year will continue much longer," says Antonio Pedraza, president of the Financial Commission of the General Council of Economists. For economists, Europe's piggy bank is being emptied of savings , and that void will begin to be noticeable in spending in the coming months, in the middle of the high season for tourism. The Spanish economy started 2023 going a little on its own . Spain's better performance in the first half of the year despite the environment of international uncertainty has led the Bank of Spain to improve growth forecasts.

The Spanish economy is responding better than expected in previous months, mainly due to the good performance of external demand," explains Salustiano Velo, coordinator of the Financial Observatory of the General Council of Economists. While threats piled up on the horizon, between inflation , the impact of interest rate increases , and banking turbulence, GDP America Cell Phone Number List grew by 0.5% , one tenth more than at the end of 2022, thanks to the push of tourism and exports. The question now is how long can the economy last without suffering from the crisis? The worst of the rate hikes is yet to come: how long will it take for them to unleash their full impact on households? People on the street with shopping bags "The accumulated savings pool that Spanish households had has been reduced from more than.

This savings rate was what was consolidating the increase and stability of income from tourism," clarifies Pedraza. But when that stock of savings runs out , Pedraza warns, "it will make the economy suffer." For months, while inflation and interest rate increases increased at full speed, household spending maintained its dynamism, as if possessed by a kind of post-pandemic carpe diem , and tourism continued to break spending records , as if it were immune. for its purposes. " We don't know if tourism will continue to operate with the same strength . The European savings pool is at 14% and continues to fall," adds Pedraza, who clarifies that tourists have been spending a lot in recent months, but at the cost of reducing their savings bag.