The OECD (Organization for Economic Cooperation and Development ) latest economic report entitled ” Turning Hope Into Reality” is far from the bounceback forecast that some commentators had hoped for earlier in the year.
Although the forecast is for “a brighter outlook” the global economic recovery will be a gradual one and much will depend on the speed of the vaccine deployment.
The global economy should return to it´s pre-covid level in 2021 rising by 4.2% after falling by the same amount this year.
However in Spain the recovery will be “gradual and incomplete,” with the report noting that the country is still experiencing mobility restrictions affecting the hospitality and retail sectors.
Analysts also predict that “the increase in private consumption will be limited by the incomplete recovery of the labour market and high precautionary saving.”
According to this report, by the end of 2022 Spain’s gross domestic product (GDP) will still be 3.5% below its pre-Covid level. The figures are less than some commentators had hoped for but still far above the expectations from when the pandemic´s first wave hit the country.
The economy is expected to contract by 11.6% this year, with growth of 5% and 4.1% for 2021 and 2022 respectively.