Central lender believes activity will return to pre-pandemic levels by the end of 2022 thanks to reopenings that are supported by improved coronavirus figures.
The economic outlook for Spain has slightly improved as the impact of the coronavirus pandemic eases. Declining coronavirus cases and deaths, coupled with a steady 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%. For next year, the forecast is being bumped up 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.
