Spain’s daily economic activity back at pre-pandemic levels

Spain’s daily economic activity has returned to pre-pandemic levels as the pace of recovery accelerated in the second half of the year, Economy Minister Nadia Calvino said this week.

The return of growth after last year’s record economic slump has boosted tax collection, which she said was likely to beat the government’s original forecast for this year by 10%.

“We have now returned to pre-pandemic levels of daily activity,” she told a news conference after a cabinet meeting.

The economy expanded a lower-than-expected 2% in the third quarter after undershooting expectations in the second quarter too, but the government expects gross domestic product to grow 6.5% this year, helped by the European Union’s pandemic recovery funds.

The government has already received 9 billion euros ($10.18 billion) during the summer and asked for an additional 10 billion euros to be disbursed in the coming weeks.

Calvino said that 65% of the recovery funds budgeted for 2021 had already been allocated. Treasury sources put the allocated amount at 15.6 billion euros. Spain is frontloading these funds from its own resources for now.

Photo – Two guests clink with cups of coffee at the terrace of a bar in Pamplona, Navarra, northern Spain. EPA-EFE/JESUS DIGES