Spain | Extremadura Economic Outlook 2021

Summary

The economy of Extremadura may have shrunk by 9.2% in 2020, and might grow 4.2% in 2021 and 7.0% 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.

Key points

• Key points:
• Extremadura shall lead GDP per capita growth until 2022. The lower relevance of social consumption and foreign tourism allow a milder recession in 2020 .
• Heterogeneous impact among urban areas, more favorable for Caceres.
• Consumption and investment may allow to add some 16,000 jobs between 2019 and 2022.
• The risks arise from the pandemic, much needed reforms and NGEU funds' distribution.

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