Bank of Spain sees economy expanding by 2.2% in Q2

The Bank of Spain said on Monday that it expects the Spanish economy to grow by 2.2% in the second quarter in its central scenario, as reported by Reuters.

Additional takeaways

"Bank of Spain puts 2021 growth at 6.2% in central scenario vs 6% seen in March, sees 4.6%-6.8% range."

Bank of Spain sees EU-harmonized inflation at 1.9% this year (previous forecast 1.4%), 1.2% in 2022, 1.2% in 2023."

"Bank of Spain sees 2022 GDP growth at 5.8% in central scenario (previous forecast 5.3%), 1.8% in 2023 (previous forecast 1.7%)."

"Bank of Spain sees unemployment rate this year at 15.6% in central scenario vs 17% seen in March."

"Bank of Spain sees 2021 public debt at 120.1%/GDP in central scenario, 117.9% in 2022, 118% in 2023."

Bank of Spain sees budget deficit this year rising to 8.2% in central scenario, deficit range from 7.8% to 8.9%."

Market reaction

The EUR/USD pair showed no immediate reaction to this report and was last seen posting small daily gains at 1.2112.