Infact, there is already talk of an economic boom with house prices set to rise

Infact, there is already talk of an economic boom with house prices set to rise. | Zipi - nip - EFE - EFE

Jason MoorePalma11/10/2021 10:45
TW
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The government will be pumping 40 billion euros into the Spanish economy next year with a massive investment programme. The aim is to kick start the economy after the pandemic. There is also pay rises for civil servants and even an allowance for young people so that they can get on the property ladder.

Infact, there is already talk of an economic boom with house prices set to rise. So it does appear that Spain will emerge from the two-year-old shutdown relatively strong but there is a concern about the tourist industry, one of the principle engines of the economy. Fingers crossed that things should return to normal next year with similar visitor numbers as those seen in 2019 before the pandemic struck.

But within the industry there is concern that perhaps Spain will not bounce back as fast as expected and whether people will travel so freely in the post pandemic era. But Spanish Prime Minister Pedro Sanchez is certainly pushing the boat out. The spending spree will certainly boost his popularity especially with civil servants who are in line for a two percent wage increase.

Support for his Spanish Socialist Party has fallen in the polls, possibly as a result of tough restrictions introduced during the pandemic. Opinion polls point to a right-wing coalition led by the Partido Popular with the support of the far-right Vox forming the next government.

It is a similar story in the Balearics where President Francina Armengol has also lost support. However, the economic bounce could give the socialists a lift with the extra cash generating a kick-start to the economy.