Spain revises Q2 growth reading down sharply

Spain revises Q2 growth reading down sharply
Spain economy. Photo: Lorenzo Cafaro / Pixabay
Spain's economy grew far slower than first believed in April-June, official data showed Thursday, as consumer spending fell short of an anticipated rebound following a third wave of Covid-19.

The National Statistics Institute (INE) said Spain’s GDP rose 1.1 percent in the second quarter – not nearly as much as trailed in its July estimate of 2.8 percent.

The statisticians said household consumption rose sharply by 4.7 percent thanks to a partial easing of restrictions linked to the coronavirus pandemic, but that was still less than the 6.6 percent hoped for.

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They also revised their figure for the first quarter of the year for the worse, saying GDP dropped by 0.6 percent instead of the 0.4 percent initially reported.

“The scale of these revisions is extraordinary,” the economy ministry said in a statement, citing “difficulty in making forecasts in a national and international economic context marked by great volatility and an unprecedented slowdown in 2020.”

Madrid nevertheless expects the Spanish economy to return to pre-pandemic levels of activity by the end of the year, as widespread vaccinations help consumption to pick up again.

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