Spain set for economic bounce!

Spain set for economic bounce! | MATTEO BAZZI

07/10/2021 17:52
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Spain plans to spend a record 40 billion euros ($46 billion) of state funds on investments next year, the government said today, as EU payments to support the economy's robust post-pandemic recovery kick in.

Spain also aims to cut the budget deficit in 2022 and again the following year, but Budget Minister Maria Jesus Montero said fiscal plans remained growth-oriented.

"There is a strong consensus that we must maintain stimulus policies to avoid damaging growth," she told reporters while presenting next year's budget draft. «These accounts have the role of an engine to stimulate activity and transformation."

The government expects economic growth to accelerate to 7% in 2022 against this year's projected 6.5% rebound from a COVID-induced slump, although weak recent data have cast doubt on the 2021 forecast.

Montero said that, including 27.6 billion euros from the EU funds, central government spending was set to rise 2.3% to around 242 billion euros. Total spending, including regional budgets and pensions, is seen up 0.6% from 2021's budget draft to 459 billion euros.