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Bank of Spain to update GDP forecasts after second quarter growth downgrade

Bank of Spain to update GDP forecasts after second quarter growth downgrade
Bank of Spain to update GDP forecasts after second quarter growth downgrade   -   Copyright  Thomson Reuters 2021
By Reuters

MADRID – The Bank of Spain will have to update its latest economic forecasts following the sharp downward revision by the Spanish statistics institute, the central bank governor Pablo Hernandez de Cos said on Tuesday.

Spain’s second quarter gross domestic growth was revised to 1.1% down from an original 2.8%, official data showed last week, jeopardising upbeat full-year forecasts of a return to pre-pandemic output levels.

Just two days earlier, the Bank of Spain had revised its full-year growth forecast for 2021 to 6.3% from 6.2%.

“These forecasts will have to be updated once the implications of the profound revision made by the (statistics institute) INE to the growth observed in the second quarter of the year,” De Cos said.