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The Spanish Economy Rebounces, and The Latest About the Coronavirus

The Spanish Economy Rebounce, The Highest Price of Electricity in History
Image: Bezoix (Freepik)
The Spanish Economy Rebounce, The Highest Price of Electricity in History
Image: Bezoix (Freepik)

The Spanish Economy Has Finally Rebounded From the Covid-19 Recession

The Spanish GDP grew by 2.8% in the second quarter of 2021, outpacing Germany, Italy and France. The economy has shot up by 19.8% since last year, an unprecedented increase in Spanish history. This is also the first time since the onset of the pandemic that the GDP enters positive territory.

The lifting of the state of alarm and the vaccination campaign infused optimism in households, boosting consumer spending in the retail, transport and hospitality sectors.

By 2022, the Spanish economy is expected to bounce back to pre-pandemic levels. Following a Cabinet meeting on Tuesday, Economy Minister Nadia Calviño also said that in 2023 Spain will return to the path of growth before the health crisis.

According to the Spanish government, the economy will grow 6.5% in 2021 and 7% in 2022. This outlook compares slightly more optimistically to the IMF’s and the European Commission’s. The international organisation forecasts a growth of 6.2% in 2021 and 5.8% in 2022. For the EU’s executive arm, it’s 6.2% and 6.3%, respectively.

In any case, Spain will be at the forefront of the economic recovery in 2022, following a record, Covid-induced dip of 10.8%.

Calviño also said that she will consider raising the minimum wage after the summer, provided unemployment keeps its downward trend. Last June saw a record-breaking decrease since the collection of statistical data began in 1996. On Wednesday, it was announced that 464.000 jobs had been created during the second semester, driving down the jobless rate to 15.26%.

Judging by these developments, workers on the minimum wage will see their monthly salary of 950 euros increase between 12 and 19 euros before the end of the year. However, unemployment is likely to rise in September, when thousands of workers lose their jobs after the summer season and the end of the government’s ERTE job retention scheme makes many workers redundant. According to data from the Social Security Ministry, released in June, 448,000 people remain furloughed.

During the press conference, it was also announced that the spending ceiling for 2022 is capped at €196.1 billion, the highest on record. This figure includes €26.4 billion from the EU recovery fund, an amount that is conditional to the implementation of reforms.

As for public deficit, which now represents a record 11% of GDP, Finance Minister María Jesús Montero said the government expects to bring it down to 8.4% in 2021 and 5% in 2022.

The Fifth Wave Prompts New Restrictions While Over 57% of the Population is Now Immunised

The vaccination drive in Spain is advancing according to plan, with 57.1% of the population now fully vaccinated, the second-highest figure only behind Canada, with 57.9%. Over 67% of people have received at least one dose of the Covid-19 vaccine.

Ever since the vaccination campaign started, socialist Prime Minister Pedro Sánchez set the goal of having 70% of the population immunised by the end of August. At the 24th Conference of Regional Presidents of Spain held in Salamanca on Friday, Sánchez announced the purchase of an extra 3,4 million Pfizer doses to ramp up the vaccination drive in August to meet the objective, but he also acknowledged that it might not be enough to achieve herd immunity. Sánchez also said the government has donated 22 million doses to underdeveloped countries.

Amid the fifth wave of the pandemic, several regions are putting new restrictions in place, especially night-time curfews and limits on social gatherings. Here is a list of restrictions currently in place in all Spanish regions.

 

Andalusia

Nighttime curfew: From 2am to 7am in Montoro (Córdoba)

Bars and restaurants: Restaurants open until 1am (8 guests per table indoors, 10 guests per table outdoors); clubs and discos until 2am.

Aragón

Nighttime curfew: No

Social gatherings: Limited to 10 people unless they live together.

Bars and restaurants: Bars open until 12:30am.

Asturias

Nighttime curfew: No

Mobility: Unlimited

Social gatherings: Limited to 10 people unless they live together.

Bars, restaurants, and nightclubs: restaurants open until 1am, indoors only for 6 people per table; outdoors up to 10 guests per table.

Balearic Islands

Nighttime curfew: No

Social gatherings: From 1am to 6am, only people living together, except on Formentera.

Bars and restaurants: Restaurants open until 1am (at 2am on Formentera), indoors only for 4 people per table; outdoors up to 12 guests per table on Mallorca, Menorca, and Ibiza.

Night clubs: Open until 2am.

Parks: Close at 10pm to avoid large groups and binge drinking.

Beaches: Closed between midnight and 6am.

Basque Country

Nighttime curfew: No

Social gatherings: Only people from the same household in open spaces between midnight and 6am to avoid large gatherings and binge drinking.

Bars and restaurants: Open until 1am. Open until 3am. Up to 6 people per table indoors and outdoors. Indoors capacity reduced to 35%.

Canary Islands

Nighttime curfew: No.

Social gatherings: Up until 10 people on El Hierro (level 1); up to 6 people on Lanzarote and La Gomera (level 2); up to 4 people on Fuerteventura, Gran Canaria and La Palma (level 3); only 2 people on Tenerife (level 4).

Bars and restaurants: Level 1: open until 2am; up to 10 people outdoors; 6 indoors. Clubs are open until 2am. Level 2: open until midnight; up to 6 people outdoors; 4 indoors. Level 3 and 4: open until midnight; up to 4 people outdoors; 4 indoors. This only applies to unvaccinated people.

Cantabria

Nighttime curfew: From 1am to 6am.

Social gatherings: Up to 6 people from 1am to 6am in high-incidence areas.

Bars and restaurants: Level 2: up to 6 people indoors and outdoors; Level 3: up to six people, outdoors only, except for vaccinated people or holders of a negative Covid test.

Nightclubs: Closed.

Castilla-La Mancha

Nighttime curfew: No

Bars and restaurants: Up to 10 people. Bars open until 2am.

Nightclubs: Until 3am.

Castilla y León

Nighttime curfew: No

Mobility: Unlimited

Social gatherings: Unlimited

Bars and restaurants: Open until 1:30am indoors and no restrictions outdoors. Up to 10 people per table indoors.

Nightclubs: Open until 1:30am with reduced capacity.

Discos: Closed.

Parks: Closed from 1am to 7am to avoid large gatherings and binge drinking.

Catalonia

Nighttime curfew: From 1am to 6am.

Social gatherings: Up to 10 people

Bars and restaurants: Bars open until 12:30am for up to 6 guests per table indoors and 10 guests outdoors.

Parks and beaches: Closed between 12:30am and 6am.

Nightclubs and discos: Closed

Valencia

Nighttime curfew: No.

Social gatherings: Up to 10 people

Bars and restaurants: Open until 12:30am for up to 10 guests.

Nightclubs and discos: Open until 12:30am.

Mass events: allowed for up to 3,000 seated people outdoors and 2,000 indoors.

Extremadura

Nighttime curfew: No

Mobility: Limited between areas with a high incidence.

Social gatherings: Up to 10 people

Bars and restaurants: Open until 3am. Up to 6 people per table indoors and 10 people per table outdoors.

Nightclubs and discos: Open until 3am.

Galicia

Nighttime curfew: No.

Social gatherings: Up to 6 people from different households indoors and 10 outdoors.

Bars and restaurants: Open until 1am, provided CO2 meters are set up. Up to 6 guests per table indoors and 10 guests per table outdoors. A vaccine certificate or negative Covid test is required to enter.

Nightclubs: Open until 3am in medium-risk areas. A vaccine certificate or negative Covid test is required to enter.

La Rioja

Nighttime curfew: No.

Social gatherings: Up to 6 people, but it is not compulsory.

Bars and restaurants: Open until 2am. Capacity reduced to 75%. 

Madrid

Nighttime curfew: No.

Bars and restaurants: Open from 6pm to 1am. Up to 8 people per table outdoors and 6 people per table indoors. 50% capacity indoors and 75% capacity outdoors.

Shopping centres, theatres, and cinemas: 75% capacity.

Nightclubs: Open until 3am.

Murcia

Nighttime curfew: No.

Social gatherings: Up to 10 people.

Restrictions on non-essential business, which will remain closed from 2am to 6am. People from different households are not allowed to gather during this time frame.

Bars and restaurants: Open until 2am. Up to 6 people per table indoors and 10 outdoors.

Nightclubs and discos: Only outdoors.

Alcohol: Not sold or served between 10pm and 6am.

Navarre

Nighttime curfew: From 1am to 6am on weekends and on the eve of public holidays.

Social gatherings: Up to 10 people

Bars and restaurants: Open until 1am. Up 6 people per table indoors and 10 outdoors.

Valencia

Nighttime curfew: From 11pm to 6am

Mobility: Unlimited

Social gatherings: Up to 10 people

Bars and restaurants: Open until 11:30pm.

Ceuta

Nighttime curfew: No

Social gatherings: Unlimited

Bars and restaurants: Open until 2am. Up 6 people per table indoors and 8 outdoors.

Nightclubs: Open until 2am. Guest are registered from 12:30am on.

Melilla

Nighttime curfew: No

Social gatherings: Open until 3am. Up 6 people per table indoors and 8 outdoors.

Dearexpat, is aimed at English-speaking readers who have been living in Spain for long enough to be interested in the country’s current affairs, with a focus on politics, the economy, society, and culture. In fact, anyone, anywhere with a keen interest in Spain might find it helpful. Since we are usually overwhelmed by an endless outpouring of news, this newsletter will be published on Fridays to provide readers with an overview of the most noteworthy events taking place during the week.

Get up to date with what is going on in Spain in just one go.
Sign up to Dearexpat,

The Spanish Economy Has Finally Rebounded From the Covid-19 Recession

The Spanish GDP grew by 2.8% in the second quarter of 2021, outpacing Germany, Italy and France. The economy has shot up by 19.8% since last year, an unprecedented increase in Spanish history. This is also the first time since the onset of the pandemic that the GDP enters positive territory.

The lifting of the state of alarm and the vaccination campaign infused optimism in households, boosting consumer spending in the retail, transport and hospitality sectors.

By 2022, the Spanish economy is expected to bounce back to pre-pandemic levels. Following a Cabinet meeting on Tuesday, Economy Minister Nadia Calviño also said that in 2023 Spain will return to the path of growth before the health crisis.

According to the Spanish government, the economy will grow 6.5% in 2021 and 7% in 2022. This outlook compares slightly more optimistically to the IMF’s and the European Commission’s. The international organisation forecasts a growth of 6.2% in 2021 and 5.8% in 2022. For the EU’s executive arm, it’s 6.2% and 6.3%, respectively.

In any case, Spain will be at the forefront of the economic recovery in 2022, following a record, Covid-induced dip of 10.8%.

Calviño also said that she will consider raising the minimum wage after the summer, provided unemployment keeps its downward trend. Last June saw a record-breaking decrease since the collection of statistical data began in 1996. On Wednesday, it was announced that 464.000 jobs had been created during the second semester, driving down the jobless rate to 15.26%.

Judging by these developments, workers on the minimum wage will see their monthly salary of 950 euros increase between 12 and 19 euros before the end of the year. However, unemployment is likely to rise in September, when thousands of workers lose their jobs after the summer season and the end of the government’s ERTE job retention scheme makes many workers redundant. According to data from the Social Security Ministry, released in June, 448,000 people remain furloughed.

During the press conference, it was also announced that the spending ceiling for 2022 is capped at €196.1 billion, the highest on record. This figure includes €26.4 billion from the EU recovery fund, an amount that is conditional to the implementation of reforms.

As for public deficit, which now represents a record 11% of GDP, Finance Minister María Jesús Montero said the government expects to bring it down to 8.4% in 2021 and 5% in 2022.

The Fifth Wave Prompts New Restrictions While Over 57% of the Population is Now Immunised

The vaccination drive in Spain is advancing according to plan, with 57.1% of the population now fully vaccinated, the second-highest figure only behind Canada, with 57.9%. Over 67% of people have received at least one dose of the Covid-19 vaccine.

Ever since the vaccination campaign started, socialist Prime Minister Pedro Sánchez set the goal of having 70% of the population immunised by the end of August. At the 24th Conference of Regional Presidents of Spain held in Salamanca on Friday, Sánchez announced the purchase of an extra 3,4 million Pfizer doses to ramp up the vaccination drive in August to meet the objective, but he also acknowledged that it might not be enough to achieve herd immunity. Sánchez also said the government has donated 22 million doses to underdeveloped countries.

Amid the fifth wave of the pandemic, several regions are putting new restrictions in place, especially night-time curfews and limits on social gatherings. Here is a list of restrictions currently in place in all Spanish regions.

 

Andalusia

Nighttime curfew: From 2am to 7am in Montoro (Córdoba)

Bars and restaurants: Restaurants open until 1am (8 guests per table indoors, 10 guests per table outdoors); clubs and discos until 2am.

Aragón

Nighttime curfew: No

Social gatherings: Limited to 10 people unless they live together.

Bars and restaurants: Bars open until 12:30am.

Asturias

Nighttime curfew: No

Mobility: Unlimited

Social gatherings: Limited to 10 people unless they live together.

Bars, restaurants, and nightclubs: restaurants open until 1am, indoors only for 6 people per table; outdoors up to 10 guests per table.

Balearic Islands

Nighttime curfew: No

Social gatherings: From 1am to 6am, only people living together, except on Formentera.

Bars and restaurants: Restaurants open until 1am (at 2am on Formentera), indoors only for 4 people per table; outdoors up to 12 guests per table on Mallorca, Menorca, and Ibiza.

Night clubs: Open until 2am.

Parks: Close at 10pm to avoid large groups and binge drinking.

Beaches: Closed between midnight and 6am.

Basque Country

Nighttime curfew: No

Social gatherings: Only people from the same household in open spaces between midnight and 6am to avoid large gatherings and binge drinking.

Bars and restaurants: Open until 1am. Open until 3am. Up to 6 people per table indoors and outdoors. Indoors capacity reduced to 35%.

Canary Islands

Nighttime curfew: No.

Social gatherings: Up until 10 people on El Hierro (level 1); up to 6 people on Lanzarote and La Gomera (level 2); up to 4 people on Fuerteventura, Gran Canaria and La Palma (level 3); only 2 people on Tenerife (level 4).

Bars and restaurants: Level 1: open until 2am; up to 10 people outdoors; 6 indoors. Clubs are open until 2am. Level 2: open until midnight; up to 6 people outdoors; 4 indoors. Level 3 and 4: open until midnight; up to 4 people outdoors; 4 indoors. This only applies to unvaccinated people.

Cantabria

Nighttime curfew: From 1am to 6am.

Social gatherings: Up to 6 people from 1am to 6am in high-incidence areas.

Bars and restaurants: Level 2: up to 6 people indoors and outdoors; Level 3: up to six people, outdoors only, except for vaccinated people or holders of a negative Covid test.

Nightclubs: Closed.

Castilla-La Mancha

Nighttime curfew: No

Bars and restaurants: Up to 10 people. Bars open until 2am.

Nightclubs: Until 3am.

Castilla y León

Nighttime curfew: No

Mobility: Unlimited

Social gatherings: Unlimited

Bars and restaurants: Open until 1:30am indoors and no restrictions outdoors. Up to 10 people per table indoors.

Nightclubs: Open until 1:30am with reduced capacity.

Discos: Closed.

Parks: Closed from 1am to 7am to avoid large gatherings and binge drinking.

Catalonia

Nighttime curfew: From 1am to 6am.

Social gatherings: Up to 10 people

Bars and restaurants: Bars open until 12:30am for up to 6 guests per table indoors and 10 guests outdoors.

Parks and beaches: Closed between 12:30am and 6am.

Nightclubs and discos: Closed

Valencia

Nighttime curfew: No.

Social gatherings: Up to 10 people

Bars and restaurants: Open until 12:30am for up to 10 guests.

Nightclubs and discos: Open until 12:30am.

Mass events: allowed for up to 3,000 seated people outdoors and 2,000 indoors.

Extremadura

Nighttime curfew: No

Mobility: Limited between areas with a high incidence.

Social gatherings: Up to 10 people

Bars and restaurants: Open until 3am. Up to 6 people per table indoors and 10 people per table outdoors.

Nightclubs and discos: Open until 3am.

Galicia

Nighttime curfew: No.

Social gatherings: Up to 6 people from different households indoors and 10 outdoors.

Bars and restaurants: Open until 1am, provided CO2 meters are set up. Up to 6 guests per table indoors and 10 guests per table outdoors. A vaccine certificate or negative Covid test is required to enter.

Nightclubs: Open until 3am in medium-risk areas. A vaccine certificate or negative Covid test is required to enter.

La Rioja

Nighttime curfew: No.

Social gatherings: Up to 6 people, but it is not compulsory.

Bars and restaurants: Open until 2am. Capacity reduced to 75%. 

Madrid

Nighttime curfew: No.

Bars and restaurants: Open from 6pm to 1am. Up to 8 people per table outdoors and 6 people per table indoors. 50% capacity indoors and 75% capacity outdoors.

Shopping centres, theatres, and cinemas: 75% capacity.

Nightclubs: Open until 3am.

Murcia

Nighttime curfew: No.

Social gatherings: Up to 10 people.

Restrictions on non-essential business, which will remain closed from 2am to 6am. People from different households are not allowed to gather during this time frame.

Bars and restaurants: Open until 2am. Up to 6 people per table indoors and 10 outdoors.

Nightclubs and discos: Only outdoors.

Alcohol: Not sold or served between 10pm and 6am.

Navarre

Nighttime curfew: From 1am to 6am on weekends and on the eve of public holidays.

Social gatherings: Up to 10 people

Bars and restaurants: Open until 1am. Up 6 people per table indoors and 10 outdoors.

Valencia

Nighttime curfew: From 11pm to 6am

Mobility: Unlimited

Social gatherings: Up to 10 people

Bars and restaurants: Open until 11:30pm.

Ceuta

Nighttime curfew: No

Social gatherings: Unlimited

Bars and restaurants: Open until 2am. Up 6 people per table indoors and 8 outdoors.

Nightclubs: Open until 2am. Guest are registered from 12:30am on.

Melilla

Nighttime curfew: No

Social gatherings: Open until 3am. Up 6 people per table indoors and 8 outdoors.

Dearexpat, is aimed at English-speaking readers who have been living in Spain for long enough to be interested in the country’s current affairs, with a focus on politics, the economy, society, and culture. In fact, anyone, anywhere with a keen interest in Spain might find it helpful. Since we are usually overwhelmed by an endless outpouring of news, this newsletter will be published every Friday to provide readers with an overview of the most noteworthy events taking place during the previous week.

Get up to date with what is going on in Spain in just one go. Sign up to Dearexpat,

Dearexpat, is aimed at English-speaking readers who have been living in Spain for long enough to be interested in the country’s current affairs, with a focus on politics, the economy, society, and culture. In fact, anyone, anywhere with a keen interest in Spain might find it helpful. Since we are usually overwhelmed by an endless outpouring of news, this newsletter will be published every Friday to provide readers with an overview of the most noteworthy events taking place during the previous week.

Get up to date with what is going on in Spain in just one go. Sign up to Dearexpat,