The Spanish economy will rebound by 5.9% in 2021 due to the attraction of domestic demand

Spain’s GDP will grow by 5.9% in 2021, after the historic decline of 10.8% in 2020, thanks to increased domestic demand, which will benefit largely from the aid of European funds, according to estimates by the International Monetary Fund, the World Bank, the Organization for Economic Cooperation and Development and the Central Bank. European.

Thus, domestic demand will rebound by 5.7% this year, driven first by business investment and then household and household consumption.

Regarding the external balance, exports of goods and consumption will rise by 9.8%, while imports will grow at a rate of 9.6%, resulting in a net positive balance of 0.2%.

The projected GDP of Spain in 2022 is 6.3%, driven by the increase in demand, the recovery and transformation plan, resilience and the recovery of tourism. Moreover, greater certainty would increase private consumption and investment in the second half of the year, as EU funds are deployed.

The “New Deal” announced by US President Joe Biden will contribute 1.4 percentage points to the global economic recovery, according to estimates by the International Monetary Fund, the World Bank, the European Central Bank and the Organization for Economic Cooperation and Development, which predicts an economic phenomenon. by 5.8% this year compared to 4.4% initially estimated.

“The burgeoning North American economy translates into an increase in demand for goods and services in the rest of the world,” explains Managing Partner of Advice Strategic Consultants, Jorge Diaz Cardel, in his latest book, The Biden-Harris New Deal: Economic Policy for the Twenty-first Century and American Leadership.