Spain | Regional Economic Outlook. Second Quarter 2021

From the second half of this year on, the progress in vaccination and larger investment related to NGEU funds shall push the recovery. In 2022, additionnally, expansive fiscal policies in Europe, Spain (and it´s autonomous communities) and the US shall push growth.

Key points

• Key points:
• Better than expected end of 2020, with weakness in foreign tourism, which has a differencial impact over the islands.
• The scenario for 2021 remains: vaccination, european funds and international environment key points to sustain the recovery.
• Activity acceleration in 2022, with fiscal push from the EMU and the US; Canary and Balearic Islands shall lead growth.
• Risks are centered in the vaccination process, and the consequences of the crisis on employment and businesses.
• Speed and efficiency regarding public funds' management by Autonomous Communities will be crucial.

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