The Governor of the Banco de España announced a downward revision of the country's GDP growth forecast for 2023, cutting it by three-tenths to 2.4%.

This adjustment comes amid concerns about the impact of US tariffs and ongoing economic uncertainty, which necessitate a cautious outlook that remains open to potential severe scenarios.

Escrivá, speaking to the Congress, acknowledged that investment has lagged in recovery compared to previous crises, although it is offset by strong export performance and improvements across various sectors over the past year.

Recent data from the central bank indicates that household spending, particularly on leisure, has been a significant driver of growth, alongside increases in high-value non-tourism service exports and the contribution of renewable energy.

The role of immigrant labor has also been highlighted as a vital component of economic resilience.

Despite the uncertain environment, the central bank's other economic forecasts remain unchanged: inflation is projected to close the year at 2.4%, the deficit is expected to be around 2.8% (below the 3% threshold), the unemployment rate is seen at 10.5%, and public debt is anticipated to reach 101.8% of GDP.

Escrivá cautioned, however, that a more favorable central scenario does not indicate that Spain is immune to international vulnerabilities, highlighting the challenges in interpreting existing economic data.

The Governor presented a theoretical pessimistic scenario involving a 20% increase in tariffs and potential retaliatory measures related to Spain's engagement with China, as well as possible financial turbulence related to US dollar policies impacting the medium-term outlook.

Facing criticisms regarding the government's economic report, which led to the resignation of the Director of Economy, Ángel Gavilán, Escrivá provided over an hour of detailed data and analysis, painting a bleak picture of economic evolution.

He also addressed structural challenges facing the economy, notably a debt level of 101%, significantly higher than the EU average of 72%, limiting Spain’s ability to respond to future economic shocks.

The central bank highlighted serious concerns in the labor market, emphasizing the absence of qualified training policies which incur significant costs for businesses.

Currently, the employment rate in Spain is reported to be four percentage points below the European average, with up to 40% of Spanish companies indicating that their operations are adversely affected by labor shortages.

Additionally, absenteeism has surged, nearly doubling in costs to an estimated 4.613 billion euros by 2024.

The Banco de España also pointed to a critical shortage of housing as a bottleneck for economic growth.

Challenges such as lack of land, insufficient workforce, and regulatory uncertainty are stifling investment, hindering the achievement of a target of 700,000 new homes annually.

Furthermore, Escrivá highlighted the low productivity of the Spanish economy, advocating for two fundamental strategies for improvement: enhancing the efficiency of public administrations and the quality of regulatory frameworks, alongside promoting robust private investment.

In comparison to other advanced European economies, Escrivá noted a deficiency in public-private collaboration, which has not yielded the anticipated results.