IBERSOL | Integrated Management Report 2022

INTEGRATED MANAGEMENT REPORT 2022 Situation in Spain In an environment of great uncertainty, the macroeconomic projec- tions of the Bank of Spain indicate that GDP growth was 4,6% in 2022, with estimates of 1,3%, 2,7% and 2,1% for 2023, 2024 and 2025, respec- tively. The inflation rate, which reached 8,4% in 2022, is expected to slow to 4,9% in 2023, 3,6% in 2024 and 1,8% in 2025. Despite the economic effects of the war in Ukraine, the rise in inflation, the tightening of financing conditions and almost a year of energy cri- sis, activity in 2022 proved more resilient than initially expected. GDP closed the year in positive territory, despite the weakness of domestic demand, which was declining throughout the year (-0,9% quarterly). Growth resulted from the contribution of external demand, due to the fall in imports (-4,2% quarterly), which far outweighed the decline in exports (-1,1% quarterly). In the coming quarters, the Spanish economy will continue to face an adverse environment marked by geopolitical uncertainty and ris- ing interest rates. But it will have some elements that support the growth of activity, such as the acceleration of the implementation of the NGEU funds and the recovery of the sectors most penalised by the pandemic, especially tourism. Inflation is likely to fall a little faster than expected, thanks to the significant drop in energy prices. Employment remained stable at the end of 2022. In average annual terms, the 2022 unemployment rate reached 12,9%, down from 14,8% in 2021. The first available indicators of industrial activity and services for 2023 show encouraging signs, placing the economy in the growth zone. 27