IBERSOL • 2023 Integrated Management Report

STRATEGIC FRAMEWORK the end of 2023, a climate of some political instability is expected in 2024, which could have negative effects on economic evolution, particularly in terms of a downturn in investment. Growth forecasts have therefore been revised downwards to 1.2 per cent and inflation is expected to be between 2.8 and 3.4 per cent. In Spain, growth is expected to be 1.6 per cent, down from 2.4 per cent in 2023. Inflation, which averaged 3.4 per cent in Spain in 2023, should moderate to 3.3 per cent in 2024 and 2.0 per cent in 2025, according to European Commission forecasts. In 2024, the Angolan economy faces five major risks: the behaviour of the oil price, the high weight of public debt (internal and external), the potential negative contagion effect on the financial sector resulting from the transition to a flexible exchange rate regime, shocks to public debt (from low GDP growth and the possible fall in the price of the barrel of oil) and, finally, a more than expected (planned) decline in oil production. Even so, the Angolan government predicts growth in Gross Domestic Product (GDP) of around 3 per cent, up from the initial forecast of 2.5 per cent and despite the 3.2 per cent drop in the oil sector. The Ibersol Group keeps a close eye on the evolution of the entire economic environment in which it operates. In addition to the impact on purchasing power and consumer habits, prolonged periods of weak economic growth are also associated with lower market confidence, lower levels of investment and a possible shortage of services and productive resources. To this end, the Group works closely with the brands it represents to establish realistic growth and expansion objectives in the markets where it operates. To ensure compliance with its medium and long-term business plans, the Ibersol Group has specialised teams dedicated to managing the expansion and refurbishment projects of its restaurant units. 70