Spain | Catalonia Economic Outlook. First half 2021

Summary

Catalonia's GDP declined by 11.2% in 2020, and is expected to increase by 6.6% in 2021 and 7.2% in 2022. Consumption, investment, exports and tourism will drive the economy through 2021. The boost from EU funds will be most noticeable around 2022.

Key points

• Key points:
• Larger fall in Catalonia's GDP in 2020 is due to the relevance of social consumption, and a larger impact on investment and exports. The labour market, protected by public policies, saw a similar contraction.
• Employment is approaching pre-crisis levels. The impact on employment was greater on the Costa Brava, due to the greater dependence on tourism.
• With the boost in consumption, investment and tourism, 200,000 jobs could be created between 2020 and 2022.
• The risks are the pandemic, tackling the necessary reforms and the distribution of NGEU funds.

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