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If there were a meter in our homes telling us how much our tax burden (or that of our children) would have to increase each day to pay off the growing public debt, it's likely that we would have a greater sense of urgency regarding the need to take measures to lighten the burden.
The economy of Asturias may have shrunk by 10.9% in 2020, and might grow 5.3% in 2021 and 6.0 in 2022. Public policies softened the impact of COVID-19. Consumption and investment will push the economy through 2021. With risks, the situation should be getting back to normal by 2022.
COVID-19 and the restrictions put in place to try to limit its spread made 2020 a very difficult year. Widespread vaccination and fiscal and monetary stimulus plans will allow growth to return in 2021 and 2022.
The European authorities have approved the Regulation of the Recovery and Resilience Facility, the main instrument of the European Recovery Fund that will channel EUR 672.5 billion through grants and loans. This is an unprecedented response and a unique opportunity that Spain must seize.
A few days ago, inflation data for January was published, which marked a turning point from the falls in 2020. Many citizens might only have noticed the recent price rises. But the change in the market basket is the key.
Despite the fall in GDP in 2H20 (-9.0% YoY), housing sales rose by 2.4% and mortgages by 5.1%. However, many of the factors supporting sales may be temporary. Towards the second half of the year, the sector could show a vigorous recovery. Its fundamentals are solid.
For both health and economic reasons, the best policy is to speed up COVID-19 vaccinations as much as possible. It is currently the most profitable social and economic investment. However, it requires anticipation in regard to logistics, infrastructure and healthcare workers to achieve herd immunity before summer.
This report evaluates the state of R&D in Spain and anaylzes the factors that hinder innovation. The implementation of the necessary reforms is essential for Spain to achieve its R&D objectives and increase its potential growth.