ARCHIVED - EC raises economic growth forecast for Spain

Predicted growth rates of over 5 per cent this year and next are based on expectations of mass Covid immunization

The European Commission has published a review of its latest he economic forecast for the next two years, raising its predictions for growth in the GDP of Spain to 5.6 per cent in 2021 and 5.3 per cent in 2022 after the pandemic caused a dramatic shrinkage of 11 per cent last year.

The EC’s revision is based on the likelihood of pandemic restrictions being lifted in the second half of this year as the vaccines reach ever more significant proportions of the population, leading to a notable increase in economic activity.

Brussels also believes that the measures which will remain in place until the summer to help businesses suffering during the pandemic will mitigate job losses and the inevitable decrease in production, but sounds a warning that when these aid packages end there could be another wave of bankruptcies and job losses.