Spanish economy forecast to bounce back to pre-pandemic levels in 2022

Spanish Economy Minister Nadia Calviño said on Tuesday, the economy is set to experience the biggest expansion of advanced nations next year, although it is expected to come after a record decline of nearly 11% in 2020 due to the coronavirus pandemic.

Key quotes

“Gross Domestic Product (GDP) will grow 6.5% in 2021 and 7% in 2022, in line with previous forecasts.”

"In 2022, Spain will recover its pre-pandemic activity and in 2023, it will return to the path of growth we had before the health crisis.”

“Will consider raising the minimum wage, depending on the evolution of the labor market after the Summer.”

“Workers were added to the Social Security system. This summer we could go back to employment levels similar to those before the pandemic."

At the Cabinet meeting, Finance Minister María Jesús Montero said “the government is hoping to bring this down to 8.4% in 2021 and 5% in 2022.”