Are you self-employed? You have to know these changes of 2020!
This year, the self-employed will have to follow the economic indicators closely, to make decisions and take certain risks.
The president of the National Federation of Self-employed Workers' Associations, ATA, Lorenzo Amor, said that "the trend of slowdown that has been taking place in recent months continues: unemployment is down by 155,000 people from the previous year, 132,000 fewer net jobs are being created and the growth of self-employed workers is down by 35,000 people compared to 2018".
For Lorenzo Amor, the economic formula for 2020 must have: "Stability, moderation, certainty and legal security". Key words when it is necessary to create a climate of confidence to generate jobs and encourage entrepreneurship.
But what are the most important economic indicators to take into account this year for the self-employed?
1. Gross Domestic Product (GDP)
If the Gross Domestic Product of a country grows, then there is more wealth in the territory. This is very important to keep in mind. In 2019, Spain's GDP was ranked 13th in the world.
Although the data from the National Institute of Statistics, show us a slowdown of this marker in the last three years.
The International Monetary Fund estimates that by 2020 the GDP (gross domestic product) will have a growth of 1.6%, the lowest in the last quarter of a century in Spain. The statistics show a "deceleration" of the economy.
And although caution is always key, it is not necessary to turn on all the alarms. According to the research service of CaixaBank, there is no strong possibility that Spain will enter a recession.
2. Consumer Price Index (CPI)
The Consumer Price Index (CPI) measures changes in the prices of products and services. The higher this index is, the lower the purchasing power of the population. In other words, people buy less, and production costs increase. For this reason, the CPI is directly related to a country's inflation.
By 2020, the National Institute of Statistics forecasts that the CPI will be around 1.4%.
3. Interest rate
Finally, we will leave this economic indicator, which also plays a role in the activity of the self-employed and SMEs.
If the rate or interest rate increases, it makes it more difficult for the self-employed and entrepreneurs to finance their investments.
Although by the end of the year, the European Central Bank (ECB) had estimated that it would adjust the rate, it took a step back and delayed its first rise for the first quarter of this year.
Do you need financial advice? At Vives Pons we are here to help you.