Economics
Bank of Spain Cuts Outlook as EU Aid Slower Than Expected
- Central bank says oil price, long-term rates are also factors
- Spanish central bank says economy probably shrank 0.4% in 1Q
People sit at the terrace of a bar in Plaza Mayor Square in Madrid, on March 20.
Photographer: Pablo Blazquez Dominguez/Getty ImagesThis article is for subscribers only.
Spain’s central bank cut its forecast for economic growth this year, saying a weaker-than-expected first quarter and a slow roll out of the European Union’s recovery funds will drag on the pace of recovery.
A higher price of oil, a slightly stronger euro and a rise in long-term interest rates also contributed to the Bank of Spain’s downgrade of its baseline scenario for Spanish gross domestic product in 2021 to a 6% expansion. The previous prediction was 6.8%.