Spain | “And yet it moves”

The rise in infections over the past month and increased costs throughout most of the past year herald a weakening of the recovery in Spain at the beginning of 2022.

Key points

• Key points:
• The burden on the economy is heavy. The rise in infections has driven several countries in the Eurozone and some Spanish regions to impose restrictions on movement and opening hours.
• The profitability of companies has also suffered considerably. The rise in the price of fuel, energy and other inputs has increased costs, without much of this being passed on to the consumer. This reduction in margins does not favor business.
• However, the data we are learning in real time point to both consumption and job creation keeping up the trends seen at the end of 2021.
• In addition, BBVA's credit card spending data point remains about 50% above the level of the first half of January 2019, and is higher than the December figure.

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