Spain cuts 2021 growth forecast to 6.5% from 7.2%

The Spanish economy is expected to expand 6.5% this year before the EU recovery funds payments versus the previous projection of a 7.2% growth, the country’s Economy Minister Nadia Calvino told a news conference on Friday.

Key quotes

“The economy should expand by 7% in 2022, with output recovering to pre-pandemic levels by the end of that year.”

“Q1 growth lower than expected due to covid third wave, Filomena storm.”

“GDP could recover pre-pandemic levels by the end of 2022.”

“GDP growth rate should exceed 2% in 2024 thanks to investment and reform program.”

“2021 unemployment rate at around 15% versus the previous forecast of 16.9%.”

“Expect growth to speed up in second half of 2021.”