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Spain predicts economy to bounce back

Jack Troughton | July 29, 2021
Economic Growth

Return to pre-pandemic levels in 2022

THE Spanish government believes economic growth will bounce back to pre-pandemic levels after a record fall of 11% in 2020 due to the Covid-19 crisis.

It predicts the biggest period of expansion of all advanced nations based on the pace of recovery following the end of health restrictions and its vaccination programme.

The cabinet believes gross domestic product – GDP – will grow 6.5% this year and 7% in 2022.

“In 2022, Spain will recover its pre-pandemic activity and, in 2023, it will return to the path of growth we had before the health crisis,” said Economy Minister Nadia Calviño.

It would make the Spain the advanced economy that will expand the most in 2022 after suffering the biggest setback last year. Output fell by a record 10.8%, the biggest fall since the Spanish Civil War.

The International Monetary Fund is a little less optimistic. The IMF said in its World Economic Outlook report that the Spanish economy would grow 6.2% in 2022 and 5.8% in 2022.