Experts and CEOs cut 2021 GDP to 4.8% and 2022 to 5.2%

The advisory firm PWC’s panel, made up of more than 400 experts, executives and business people, cut its GDP growth estimate for this year from 6.3% to 4.8% and lowered one-tenth to 5,2%, its 2022 forecast. The price hikes recorded in recent months are already seen as the main risk to the economy in the medium term for nearly 90% of those surveyed, despite the fact that in the same proportion, many admit that it is a phenomenon of “transient nature”.

Most also warn of the danger involved in converting this rise in prices into wages, with the consequent increase in costs, and warn that in this case inflation could become a “structural” factor.

Higher prices are seen as the main risk to the economy in the medium term, according to PWC

According to the report, the economic and financial situation of families “not only improved.” 65% of those consulted believe it is regular and 68% expect it to remain the same for the next three months. This view is determined, on the one hand, in the behavior of consumption. Here are those who believe that it will increase decrease by more than forty points and grow by more than 20, even 49%, those who assert that it will remain stable in the next six months. On the other hand, in the development of home purchases that will not continue to grow, according to more than half of those surveyed.

On the other hand, 64.7% of respondents rated their economic and financial situation as fair and 31.4% as good, and in the next three months only 25% expect the situation to improve and 67.6% keep it the same.

Looking at the next 12 months, 50.5% expect an increase in productive investment, 45.5% in exports and 54.6% in job creation. As for the exchange rate between the euro and the dollar, 60.6% expect that in December 2022 it will be between 1.1 and 1.2. Regarding the global economy, 35.9% of those surveyed rated it as good and 59% as fair. However, those who believed it would improve fell from 73.8% to 29.1% and those who believed it would continue in the same vein grew from 20.6% to 56.3%.