Bank Of Spain ‘Confident Over Recovery’ As Economic Growth Forecast Rises To 6.2%

Bank Of Spain ‘Confident Over Recovery’ As Economic Growth Forecast Rises To 6.2%.

The Bank of Spain believes that activity will return to pre-pandemic levels by the end of 2022 thanks to reopenings of businesses across the country that are supported by the much improved coronavirus figures.

The economic outlook for Spain is improving as the impact of the coronavirus pandemic eases. Declining coronavirus cases and deaths, coupled with a steady and succesfull vaccination drive, are stimulating activity, consumption and public confidence.

As a result, the Bank of Spain has slightly raised its 2021 growth prospects for the Spanish economy from 6% to 6.2% and for next year, the forecast is being raised from 5.3% to 5.8%.

Following an interruption of growth caused by the stricter coronavirus restrictions in force in late 2020 and early 2021, the economy is expanding again as reopenings get underway. Figures have been improving since March, said Óscar Arce, the Bank of Spain’s director general for economics, statistics and research.

This is especially noticeable in the number of contributors to Social Security, the drop in furloughed workers on the government’s ERTE scheme, mobility indicators, rising exports and confidence surveys. The polls are reflecting a robust industrial expansion and growth in services. The most recent available figures on fuel consumption remain around 10% below pre-pandemic times.

The Spanish Government had indicated signs of recovery since mid-April with an anticipated busy summer period of tourism to boost the nation.

Óscar Arce, the chief economist at the Bank of Spain said: “Things are getting better and the normal course of events would be for growth to accelerate gradually, always depending on the evolution of vaccines and barring any more trouble from the virus,” adding that, “The short-term risk used to be the pace of vaccination; now, with a view to the summer, the key lies in saving the tourism season; towards the end of the year, it will be important to implement the European funds.”

Thank you for taking the time to read this article, please remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories.

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Ron Howells

Ron actually started his working career as an Ophthalmic Technician- things changed when, during a band rehearsal, his amplifier blew up and he couldn’t get it fixed so he took a course at Birmingham University and ended up doing a degree course. He built up a chain of electronics stores and sold them as a franchise over 35 years ago. After five years touring the world Ron decided to move to Spain with his wife and son, a place they had visited over the years, and only bought the villa they live in because it has a guitar-shaped swimming pool!. Playing the guitar since the age of 7, he can often be seen, (and heard!) at beach bars and clubs along the length of the coast. He has always been interested in the news and constantly thrives to present his articles in an interesting and engaging way.


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