Page 23 - economic report 2021

as revaluation of pensions and other benefits FRANCE. MAIN MACROECONOMIC
by 4%, and €100 food cheques for vulnerable AGGREGATES - Interannual variation rates Table 2.1
families. On the other hand, implementation
of the Next Generation EU programme is 2019 2020 2021
providing support to growth in France, which Components of demand
will receive €40,000M in European subsidies. Private consumpt on 1.9 -6.5 6.0
The 2022 resilience plan backed finance for Public consumpt on 1.0 -0.8 2.8
renovating and insulating homes. Moreover, Gross f xed capital format on 4.1 -8.2 11.5
grants for investment in automobiles and Domest c demand
household energy focus on ecological without inventories (a) 2.1 -6.4 7.0
alternatives and will increase the consumption Inventories (a) 0.0 -0.2 -0.3
of durable goods and investment in housing. Exports of goods & services 1.5 16.8 8.8
Finally, more public investment is expected in Imports of goods & services 2.4 -12.8 8.0
infrastructure and digitalisation, plus additional
finance for training programmes. Components of supply
Agriculture -2.3 -6.3 -0.6
In 2022, economic prospects Industry 1.7 -10.7 4.5
are highly uncertain due to the Construct on 2.6 -14.0 13.7
Ukraine crisis and inf at on. Commerce, transport, hotels & 2.4 -13.2 8.8
catering
Informat on & communicat ons 4.8 -0.3 8.8
After the extraordinary increase in the public Financial act vit es 1.7 -4.0 9.2
deficit from rising expenditure to deal with the Real estate act vit es 1.9 -1.2 1.5
COVID-19 crisis, the public deficit is expected Scient f c act vit es & prof. services 2.8 -5.9 6.3
to slow in 2022 to 4.6% of GDP, while still Public admin., health & social serv. 0.6 -5.5 6.5 21
remaining high, then gradually fall again from Cultural, recreat onal & other 2.3 -26.0 12.3
2023 as activity returns to normal, according act vit es
to European Commission forecasts.
GDP at market prices 1.8 -7.8 6.8
However, note that the stated forecast (a) Contribut on to growth of GDP at market prices.
scenarios are subject to great uncertainty due
Source: INSEE (demand) and Eurostat (supply).
to the geopolitical situation around the Ukraine
war, which is very unstable and changeable,
with a more or less serious risk of impacting Europe. A sudden halt in energy imports from Russia
would probably have very serious economic consequences, but these are difficult to quantify at
this moment. In contrast, the easing of geopolitical tension, whether partial or gradual, would
have positive effects on activity and push inflation down. Finally, these forecasts do not consider
any new sanctions that could be imposed on Russia or the response of the Russian government
to further sanctions.

III. The Spanish economy The external environment of the Andorran economy | III. The Spanish economy

1. The main features of economic development in 2021

In 2021, Spanish GDP increased 5.1%, which is considerable growth but must be contextualised
as a comparison with a year with a historic fall in activity (-10.8% in 2020), due to the COVID-19
pandemic which caused a crisis without precedents in recent history. The first step was taken in
2021 to return to a certain normality in social and economic activity, as before the outbreak of