SPAIN cut its economic growth prediction for 2022 on Friday, owing mostly to the effects of Russia's invasion of Ukraine, which has fueled inflation and harmed consumer demand.
According to the economics ministry, the eurozone's fourth-largest economy's GDP is now likely to grow by 4.3 percent rather than the 7.0 percent earlier forecast.
"The attack against Ukraine has significant economic and social consequences that impact all European nations," Economy Minister Nadia Calvino said at a press conference.
Madrid had originally planned for a strong recovery by 2022, assuming that the effects of the coronavirus epidemic would begin to fade.
However, Russia's invasion of Ukraine has worsened supply chain issues and raised costs for essential needs, particularly oil.
According to the national statistics institute INE, Spain's GDP grew by 0.3 percent in the first quarter of 2022, down from 2.2 percent in the previous three months.
The country's tourism-dependent economy grew by 5.1 percent last year after falling by 10.8 percent in 2020 owing to the epidemic, one of the worst performances among developed countries.