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Voter perception of the economy diverges from macro data, risking misaligned policy and consumer behavior

Executive summary: Voters believe the economy is worse when their preferred party is not in office, regardless of actual macroeconomic data. This divergence between perception and data can skew consumer confidence, spending, and political decision‑making, creating risks for economic stability and policy effectiveness.

Who is involved: Voters, political parties, policymakers, and economists.

Likely next: Continued gaps between objective indicators and public sentiment may shape upcoming policy debates and influence market expectations.

The El País article reports that voters assess the national economy more negatively when their preferred party is out of power, even when objective indicators show strength. This perception gap can distort consumer confidence and spending patterns, as electoral sentiment influences economic behavior independently of fundamentals. Consequently, policymakers may face pressure to adopt populist measures to align with voter sentiment, potentially affecting fiscal stability and market expectations.

What's next — scenarios

Base: perception gap persists (50%)

Voter sentiment remains misaligned with macro data, leading to modest policy tweaks and steady consumer spending.

Upside: macro data improves voter perception (25%)

Positive economic releases narrow the perception gap, boosting confidence and spending.

Downside: perception gap widens, prompting populist pressure (25%)

Voter discontent grows despite strong data, increasing pressure for populist measures and market volatility.

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