Spain’s government trims 2021 GDP forecast to 6.5%

Bloomberg

Spain’s government trimmed its 2021 annual economic growth forecast to 6.5% after renewed pandemic restrictions led to a worse-than-expected first quarter, Economy Minister Nadia Calvino said in a presentation.
The government’s previous outlook, published in October, forecast a baseline economic expansion of 7.2% this year and as much as 9.8% if the European Union pandemic recovery funds were quickly deployed.
Spain’s economy contracted more sharply last year than any other major EU country.
Since October, delays to the roll out of vaccines and deployment of EU funds have slowed economic momentum and so have renewed restrictions on movement in parts of the country. Calvino also cited the impact from mobility curbs in some of Spain’s neighboring countries, including key trade partners Germany, France and Italy.
Spain’s economy contracted more sharply last year than any other major EU country. The new downward revision puts the government’s forecasts more in line with those of other economists.