Spain’s Central Bank (Banco de España) on Wednesday ruled out a rapid economic recovery. This will be particularly true for the tourism sector, which accounts for almost 15% of the country’s GDP, EURACTIV’s partner EFE reported.
While Spain’s public financial institution lowered growth forecasts for 2021 to 4.1%-7.3% in its latest report released on Wednesday, the economy’s contraction for 2020 was placed in between 10.5 and 12. 6%, a figure that is in line with its June forecast.
The Bank had last June projected three scenarios for the “recovery phase”, yet these have been revised and have even worsened.
Now, the most “optimistic” scenario for there to be a gradual, but sustained, recovery.
This is due to the difficult health situation and the huge increase –since last July – of COVID-19 outbreaks across the country, mainly, but not only, in the country’s capital, Madrid.