Spain's Q2 GDP growth revised down to 1.1% from 2.8%

Spain's economic recovery from the COVID-19-induced crisis was much slower in the second quarter than previously estimated, the National Statistics Institute (INE) said on Thursday, revising down the quarterly growth rate to 1.1% from 2.8%. Final data on sales, jobs and salaries from both large and small companies in the service and manufacturing industries, as well as private consumption, prompted the downward revision from a late July estimate, the INE said.

Spain's economic recovery from the COVID-19-induced crisis was much slower in the second quarter than previously estimated, the National Statistics Institute (INE) said on Thursday, revising down the quarterly growth rate to 1.1% from 2.8%.

Final data on sales, jobs, and salaries from both large and small companies in the service and manufacturing industries, as well as private consumption, prompted the downward revision from a late July estimate, the INE said. In a separate press release, the economy ministry attributed the growth downgrade to the service industries that were most affected by the pandemic.

The INE also revised year-on-year growth in the second quarter to 17.5%, down from 19.8%. Earlier this week the Bank of Spain raised its forecasts for this year, mainly because the provisional 2.8% second-quarter growth was "a positive and big surprise", chief economist of the central bank Oscar Arce said.

Bank of Spain had previously estimated 2.2% growth for the period. Spanish Economy Minister Nadia Calvino had also this week announced the 2.8% growth in the second quarter would make it possible for the gross domestic product (GDP) to return to pre-pandemic levels by the end of this year...

The Spanish economy contracted 0.6% in the first quarter of 2021 compared with the fourth quarter of 2020, and 4.2% compared to the first quarter of 2020. Spain had reported one of the deepest contractions in the European Union in 2020, with a 10.8% shrinkage.

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