The OECD raises Spain's growth forecast for 2021 to 5.7%
The Organisation for Economic Co-operation and Development (OECD) has increased its forecast for Spain's Gross Domestic Product (GDP) growth for 2021 by seven tenths of a percentage point to 5.7%, according to the March update of its 'Economic Outlook' report.
The growth for this year and next comes after Spain recorded a fall in GDP of 11% in 2020. This figure is larger than all G20 economies. It was followed by Argentina, with a fall of 10.5%, and the UK, with 9.9%.
The improvement in Spain's outlook is the highest in comparison with its peers. For the euro area as a whole, the OECD has placed growth for 2021 at 3.9%, three tenths of a percentage point more than its previous forecast, while the estimate for 2022 is 3.8%, five tenths of a percentage point more.
By country, the OECD has worsened the forecasts for Italy and France for 2021 by two tenths and one tenth of a percentage point, respectively. Thus, Italian GDP growth will be 4.1%, while that of France will reach 5.9%. In the case of Germany, the OECD expects GDP to rise by 3%, two tenths of a percentage point more.
With regard to the data for 2022, the forecast is that Italy will grow by 4% (eight tenths more than the previous estimate), France by 3.8% (five tenths more) and Germany by 3.7% (four tenths more). For the euro area as a whole, the OECD has estimated a GDP increase of 3.8% next year, five tenths of a percentage point more.
Globally, the Paris-based organisation explained that the economic outlook has improved "markedly" in recent months due to the gradual roll-out of the various vaccines against COVID-19, as well as the announcement of additional fiscal support in some countries and "signs" that economies are adopting better measures to contain the virus.
Across the board, the OECD urged governments in all countries to continue to use fiscal policy to support workers, businesses and sectors most affected by the pandemic. In addition, it recalled that "structural reforms" will be needed in the aftermath of this crisis to improve the resilience of the economy or facilitate the reallocation of resources.