Spain | Basque Country Economic Outlook 2021

Summary

The Basque economy may have shrunk by 10.5% in 2020, and may grow 5.5% in 2021 and 7.5% in 2022. Public policies and the lower weight of social consumption softened the impact of COVID-19. Consumption, investment and exports will push the economy. With risks, European funds shall boost growth especially through 2022.

Key points

• Key points:
• Lower loss of Basque GDP in 2020, given the lower weight of social consumption and greater of essential sectors.
• Lower impact on employment in the Great Bilbao Area, higher in Alava Plains (Vitoria-Gasteiz) and some industrial counties.
• The push of consumption, investment and exports may help add 39,000 jobs between 2020 and 2022.
• The risks are the pandemic, to tackle the necessary reforms and the distribution of NGEU funds.

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