Spanish Minister of Economy Nadia Calvino (Nadia Calvino) announced on Thursday that the Spanish government will lower its estimate of gross domestic product (GDP) growth in 2021 because the first quarter’s data was lower than expected.
Minister Calvino said in an interview with Bloomberg TV: “The first quarter is very difficult. This is the main reason for our 2021 budget cut.”
She added: “We expect this year’s growth rate to reach around 7%. Due to a quarter of the delay in recovery, the growth rate may still be lower.”
Calvino told Bloomberg TV that all indicators in March were positive, and although the second quarter will be a transitional period, the second half of this year will bring a “very strong recovery.”
Currently, the government estimates that the economy will grow by 7.2% this year after a 11% decline in 2020. Reuters pointed out that the Fed and other analysts are somewhat more cautious and expect growth to be more moderate.