The gross domestic product (GDP) of Spain will experience an increase of 6.2% in 2021, which represents a reduction of two tenths with respect to the projection published in April by the International Monetary Fund (IMF), which has sharply revised its forecast for 2022 upwards, which rises to 5.8% from 4.7% last spring.
Thus, Spain will be the fourth fastest growing country among the large advanced economies this year, only behind United States Y United Kingdom (7% each) and Canada (6.3%), while it will lead the growth of the main developed economies in 2022.
In this sense, the IMF forecasts take into account the deployment of the resources of the european recovery fund, as well as the positive effect for the Spanish economy of the progress in vaccination, which will allow a greater reopening of the economy and a stronger rebound in the second half of 2021, which will carry over to 2022.
On the other hand, the Fund’s new forecasts suggest that Spain’s budget deficit will close 2021 at 8.6%, somewhat better than the negative imbalance of 9% estimated in April, after the 11% corresponding to 2020, while public debt will stand at 120.1% of GDP.
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