The purpose of this report is to analyse the budgetary execution, public debt and expenditure rule of the different Public Administrations (PAs) in 2020. AIReF is updating its macroeconomic and fiscal forecasts in a context that is still highly uncertain, both in the healthcare field and in the economic and fiscal spheres.
AIReF has lowered its estimates for the contraction of economic activity in 2020 to a fall in GDP of between -10.1% and -12.4%, depending on the duration of the pandemic, compared to the previously estimated -8.9 and -11.7%. AIReF estimates a PA deficit of 11.9% for 2020, which could reach 14.4% if the most adverse scenario materialises.
AIReF recommends activating the escape clause, establishing a medium-term fiscal strategy, and implementing the proposals of the Spending Review.
To read the executive summary of the report please click here