STORY: Spanish economy enjoys positive outlook in coming years, says economist
SHOOTING TIME: April 8, 2024
DATELINE: April 9, 2024
LENGTH: 00:02:11
LOCATION: BARCELONA, Spain
CATEGORY: ECONOMY

SHOTLIST:
1. sequence shots on movement of vehicles and people in the center of Barcelona, Spain
2. sequence shots on container terminals at the Port of Barcelona and goods transported by train
3. sequence shots on headquarters of the Bank of Spain in Madrid
4. sequence shots on manufacturing and industrial technology
5. SOUNDBITE 1 (Spanish): JAVIER VAZQUEZ, Associate professor of economics at University of Barcelona
6. sequence shots on gas tanks in the port and traffic of people and vehicles in the city center
7. SOUNDBITE 2 (Spanish): JAVIER VAZQUEZ, Associate professor of economics at University of Barcelona
8. sequence shots on rail transport and port infrastructure
9. SOUNDBITE 3 (Spanish): JAVIER VAZQUEZ, Associate professor of economics at University of Barcelona
10. sequence shots on people shopping in a market
11. sequence shots on manufacturing and the automotive industry

STORYLINE:

The Spanish economy enjoys a positive outlook in the coming years, Javier Vazquez, associate professor of economics at the University of Barcelona, told Xinhua in an interview on Monday.

SOUNDBITE 1 (Spanish): JAVIER VAZQUEZ, Associate professor of economics at University of Barcelona
"What's expected this year is, for economic growth, to be slightly lower at about 2 percent, but that will be higher than growth in Europe as a whole and the Spanish economy will continue to be one of the European economies that will grow the most."

At 2.5 percent, economic growth in Spain exceeded expectations last year, while the Bank of Spain this month raised its forecast for GDP growth in 2024 from 1.6 to 1.9 percent. In comparison, the European Central Bank (ECB), in its March projections, cut this year's economic growth forecast for the euro area from 0.8 percent to 0.6 percent.

One of Spain's leading economic forecasters, BBVA Research, also raised its GDP growth forecast for 2024 in March, from 1.5 to 2.1 percent, citing lower inflation and the strength of the country's service exports among the reasons for the adjustment.

Meanwhile, the professor noted that lower energy costs, which incentivize production and internal consumption, have also contributed to Spain's economic growth.

SOUNDBITE 2 (Spanish): JAVIER VAZQUEZ, Associate professor of economics at University of Barcelona
"A reduction in interest rates will not only relieve the pressure on households and provide families with more income to pay their debts and mortgages, but it will also make it cheaper for companies to raise funds."

GDP growth is expected to rally in 2025 in Europe as a whole, as inflation continues to fall. The Bank of Spain predicts a 1.9-percent economic growth for the country in 2025, higher than the 1.7-percent forecast by the EU for next year.

SOUNDBITE 3 (Spanish): JAVIER VAZQUEZ, Associate professor of economics at University of Barcelona
"In the mid-term, over the next couple of years, the perspectives are good for the Spanish economy, but at the same time dependent on a very uncertain international context, which we have seen can change extremely quickly."

Despite the positive outlook for Spain, there is still work to do in a number of areas, not least addressing the Spanish economy's "Achilles' heel" of "very low productivity," the expert warned.

"Apart from improving productivity, one area that needs attention -- and which all recent governments have said they want to tackle -- is reducing the bureaucracy that companies deal with," he concluded.

Xinhua News Agency correspondents reporting from Barcelona, Spain.
(XHTV)