Spain struggles to bring the economy back on track

Spain needs to see a change in working patterns C

Spain needs to see a change in working patterns Credit: La Moncloa flickr

SPAIN struggles to bring the economy back on track but still believes that initial growth forecasts for 2021 will be met.

The Bank of Spain has confirmed in its second quarter 2021 review that the General government debt under the Excessive Deficit Protocol (EDP)1 amounted to €1.42 trillion at the end of June 2021.

This means that public debt has risen to 122.8 per cent of Gross Domestic Product (GDP) and is some 12.5 per cent higher than the same quarter in 2020 but has fallen from the first quarter deficit of 125.3 per cent.

The report from the Bank suggests that this continued high amount of debt, which is currently growing at a rate of 10.4 per cent per annum has been caused by additional spending due to the pandemic.

WITH inflation increasing as well as National Debt, the forecast recovery for the Spanish economy has taken another, slightly less dramatic, blow.

Latest figures released by the Office of National Statistics (INE) reveal that retail sales decreased by 0.2 per cent in August following a flat July even though restrictions have been lifted to a great extent over much of the country.

Overall, retail sales are down by 0.9 percent on an annual basis but the Government is still confident that the economy will bounce back strongly and has not changed its forecast of an overall 6.5 per cent growth by the end of the year.

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Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Currently he is acting as Editorial Consultant for the paper helping to shape its future development. Share your story with us by emailing, by calling +34 951 38 61 61 or by messaging our Facebook page