Spain's Economy Returns To Growth

Spain's economy returns to growth

Spain's economy rebounded into growth in the second quarter, data showed Friday, expanding by 2.8 percent from the first three months of the year despite lingering uncertainty about the Covid-19 pandemic

Madrid, (UrduPoint / Pakistan Point News - 30th Jul, 2021 ) :Spain's economy rebounded into growth in the second quarter, data showed Friday, expanding by 2.8 percent from the first three months of the year despite lingering uncertainty about the Covid-19 pandemic.

In the first quarter of the year the Spanish economy contracted by 0.4 percent after having plunged by 10.8 percent in 2020.

The first quarter drop was due to a cold snap as well as tightened pandemic restrictions due to climbing cases.

But the second quarter benefitted from relaxing pandemic restrictions as contaminations dropped and the vaccination campaign swung into action.

Compared to the second quarter of 2020, when much of the Spanish economy was at a standstill due to pandemic lockdowns, the expansion was 20 percent.

The outlook for the third quarter has darkened as Spain's key tourism industry has not enjoyed a much-hoped-for rebound as the surge in the Delta variant has cooled vacation travel despite progress with vaccination campaigns.

The Spanish government still forecasts the economy will expand by 6.5 percent for the year.

The International Monetary Fund recently lowered its forecast to 6.2 percent, from 6.5 percent.