Artículos

Spain’s economic recovery is proving weaker than initially predicted, with 2021 growth now projected to come in 1.2 percentage points lower than in the previous forecast. Inflation will continue to be a key source of risk, with the potential to further undermine household and business purchasing power.

Spain is set to received 140 billion euros as part of the Next Generation EU funds to facilitate the country’s recovery from the COVID-19 crisis, with a focus on the green and digital transitions. So far, progress on executing plans to use these funds has been uneven, with investments and reforms expected to ramp up in 2022.

Spanish productivity has lagged both the US and eurozone for the past two decades due to lower investment in key areas, such as technological and human capital, among
others. Although the European recovery funds should facilitate investment in areas like digitalisation, structural reforms will also be necessary to boost Spain’s productivity growth.