Spain | Regional Economic Outlook. Third Quarter 2021

The improvement in health indicators and the relaxation of restrictions have reduced uncertainty and allowed a recovery in private spending and national tourism. The foregoing translates into generalized upward revisions in all regions in 2021, although with a different magnitude.

Key points

• Key points:
• The Mediterranean and island communities will lead the growth, favored by the recovery of tourism, especially national.
• In the same way, Aragón, Galicia and Cantabria will grow more than the average, thanks to the push from exports and investment.
• Towards 2022, the scenario handled by BBVA Research contemplates relatively few changes compared to what was anticipated a few months ago.
• The control of the disease, the use of savings impounded by families, the approval of the Recovery Plan, the arrival of NGEU funds, the ECB's impulse measures and a high unused productive capacity would be behind the rebound next year.

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