Spain GDP Revised for Past Years on Stronger Pandemic Rally

(Bloomberg) -- The Spanish economy rebounded more strongly from the Covid-19 pandemic shock than initially though.

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Gross domestic product expanded 6.4% in 2021 and 5.8% the following year, well above the originally reported 5.5% readings for both years, according to revised data released by the national statistics institute, known as INE, on Monday. The revised reading show the Spanish economy returned to pre-pandemic levels in 2022 instead of mid-2023.

As a result of the revision, the government cut its debt-to-GDP ratio forecast to below 110% this year from 111.9% previously, according to a separate statement from the economy ministry.

Since 2021, some economists have questioned the accuracy of INE’s economic data after a string of disappointing growth contrasted with a booming jobs market and near-record tax revenues. Last year, the head of INE stepped down following differences between the agency and government over the calculation of key economic data.

The new figures came after a similar sharp upward revision in the UK, highlighting the difficulties of statistics officials faced to measure activity in the aftermath of the pandemic.

(Adds details and government’s new debt forecast in 2nd and 3rd graphs)

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