Spanish economists warn of likely stagflation in 2026, citing deteriorating national economy
Executive summary: A survey conducted by Spain’s General Council of Economists found that nearly 65 % of economists expect the Spanish economy to deteriorate in 2026, describing the outlook as stagflation. Stagflation combines low growth with rising inflation, posing a dual challenge for policymakers and threatening household purchasing power, corporate profits and sovereign debt sustainability. Spain’s General Council of Economists,Spanish households and businesses,European Central Bank,Spanish fiscal authorities The ECB will monitor inflation and growth indicators at its upcoming July meeting,The Spanish government may consider targeted fiscal stimulus or support measures,Quarterly GDP and unemployment data for Spain will be released in the coming weeks,Wage‑price negotiations between unions and employers could intensify
A survey by Spain’s General Council of Economists shows that roughly two‑thirds of experts anticipate a deterioration of the national economy this year, describing the outlook as stagflation — stagnant growth accompanied by rising inflation. The finding highlights growing concern among analysts that Spain could face a combination of weak output and higher consumer prices, which would complicate monetary and fiscal policy responses. If materialized, the scenario would weigh on household purchasing power, business investment and public finances, while also influencing broader Eurozone economic dynamics.
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