Pablo Hernández de Cos: Presentation of the Bank of Spain's Annual Report 2021

Speech by Mr Pablo Hernández de Cos, Governor of the Bank of Spain, at the Economic Affairs and Digital Transformation Committee, Barcelona, 1 June 2022.

Central bank speech  | 
21 June 2022

Mr Chairman, ladies and gentlemen:

I appear before this Committee to present the Annual Report 2021 of the Banco de España. The report offers an analysis of recent developments in the Spanish economy within the global setting, as well as how it is likely to perform in the future and the challenges it faces.

I should like to begin by describing how the Spanish economy performed and the role played by economic policy in 2021. Next, I shall present the economic outlook following the new shock triggered by the Russian invasion of Ukraine, before going on to describe the key aspects of the sharp rise in inflation and outlining my thoughts about the role that economic policy must play to meet the short-term challenges. I shall then discuss the main mediumterm challenges and the recommendations that, in the Banco de España's view, it would be desirable to implement, to tackle them. Lastly, I shall address the situation of the banking system, by summarising the main messages from our latest Financial Stability Report, published in April.