MADRID (Reuters) – The Spanish economy will expand at a pace above 10% in the third quarter, Economy Minister Nadia Calvino said on Thursday, without giving projections for the full year.
The minister reiterated the forecast after the central bank on Wednesday lowered its growth expectations for this year, 2021 and 2022, citing a surge in coronavirus infections that weighed on activity in the third quarter.
The Bank of Spain still expects gross domestic product to rebound between 13% and 16.6% in the quarter after it shrank a record 18.5% in the preceding three months, but said it should be 9.5%-12.3% below year-ago levels. It expects the economy to contract 10.5%-12.6% this year.
Most industries went into a standstill in the second quarter as a result of a strict lockdown imposed to curb the pandemic.
(Reporting by Emma Pinedo, Editing by Inti Landauro)
