The Spanish banking sector continues to improve its results, and faces uncertainties regarding its resilience.

Macro scenario
Overcoming the shock of Covid – at least from an economic perspective – the Euro
area predicted a scenario of accelerated and prolonged growth. Improvements in the
supply chain, substantial household savings and a good tourism season supported
this thesis. However, the supply shock in key raw materials due to the Ukraine War
has pushed the CPI up to levels not foreseen last year (10.8% in Spain in July). The
projected baseline scenario suggests CPI rates above 4% in the Euro area until the
end of 2023, a negative impact on household consumption, and on GDP, which will
see less growth than had been expected in the coming quarters. […]

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