By John Smith • 28 October 2021 • 15:26
The Council of Ministers have a lot of work ahead
Credit: La Moncloa Flickr
THE Spanish Government prepares budget using optimistic growth figures which are unlikely to be realistic according to internal and external specialist bodies.
One of the measures of a country’s prosperity is growth of GDP (Gross Domestic Product) and the Bank of Spain now admits that the 2021 figures will be lower than forecast.
According to the Governor of the Bank, Pablo Hernandez de Cos, the second quarter figure stands 8.4 per cent down on the final 2019 figure and he blames problems with the global supply chains causing industrial bottlenecks as well as an increase in material cost and high energy prices.
Spain’s Government is working on a figure of 6.5 per cent growth compared to the Bank’s latest 6.3 per cent figure (which will be reviewed in December) but Spanish commercial bank BBVA has reduced its forecast to 5.2 per cent whilst the International Monetary Fund has cut its expectations from 6.4 per cent to 5.7 per cent.
The hospitality industry is still not completely back on its feet as it missed a significant amount of tourist income in the early part of summer and although the money received from the European Union Recovery Fund will help future growth considerably, there is still plenty of work to be done on the economy.
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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.
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