October 22, 2020

The Government confirms the economic debacle with a fall of 11.2% in 2020 but raises growth to 7.2% in 2021

2020 will be a year to forget in every way. The Government announced this Monday that the economic forecasts for this year will be worse than those announced in spring, with a collapse of 11.2% in the economy, but indicates that GDP growth in 2021 will reach 7.2%, and may even be between two and three percentage points, up to 9.8% of GDP, with the averages of the Recovery Plan with European funds that the President of the Government will explain this Wednesday.

The Vice President of Economic Affairs. Nadia Calviño, has presented this new economic picture as a prelude to the design of the General State Budgets for 2021. Calviño explained that the new figures for 2020 respond to a worsening of the fall in GDP due to the worst performance of the Spanish economy in the third quarter with a drop of 13%.

Despite the fact that the economic vice president has highlighted the measures against the destruction of employment that the Government has implemented, the Government’s forecasts are that employment will decrease by 8.4% and the unemployment rate will rise to 17.1% in 2020. Even with the good prospects for economic growth, unemployment will not drop below 16.9% in 2021.

The real recovery will come in 2021, when the Spanish economy will experience growth of 7.2%, driven by private consumption that will increase 8.3% and investment, which will rise 7.2% next year, and also by the foreign sector, with a boost in imports, 11.7%, and exports, 8.6%.


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