New data casts doubt on Spain’s rapid economic recovery – Eurasia Review

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By Fernando Heller

(EurActiv) – Less than 48 hours after the Spanish Central Bank (Banco de España) and the OECD predicted a robust recovery in the Iberian country’s economy this year and into 2022, new data released Thursday by the National Institute of Spanish statistics (INE) foresaw a less optimistic outlook.

INE has corrected growth data for the Spanish economy for the second quarter of the year by 1.7 points, which is equivalent to a rebound of 1.1% from the first quarter, or close two points less than the 2.8% that the official institution planned.

The Spanish economy rose in the second quarter – against a contraction of 0.6% in the first quarter – although less robustly than expected in the previous INE report, published last July.

Household consumption in the second quarter rose 4.7%, mainly due to savings accrued from mobility restrictions implemented across the country to contain the pandemic, and the subsequent easing of some restrictions.

Quoted by El País, María Jesús Fernández, of the Spanish think tank Funcas, warned that if the current forecast remains unchanged for the third and fourth quarters, Spain’s GDP growth for this year “will be reduced by one point, by 6, 3% to 5.2% ”.

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