Spain's economy minister sees recovery slowing in Q4

Credit: REUTERS/HANNIBAL HANSCHKE

Spain's Economy Minister Nadia Calvino said on Monday economic growth in the fourth quarter will likely be slower than the 13% she expects in the third quarter.

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MADRID, Oct 19 (Reuters) - Spain's Economy Minister Nadia Calvino said on Monday economic growth in the fourth quarter will likely be slower than the 13% she expects in the third quarter.

"It's obvious that the fourth quarter has to have a slower growth than the third quarter," Calvino said in an interview with Spanish radio station RNE, pointing out that third quarter data benefited from a rebound effect after a record fall in the second quarter.

In April to June, Spain's gross domestic product shrunk by almost 18% from the previous quarter as a result of the coronavirus pandemic and the lockdown imposed between mid March and late June.

The Spanish government expects its economy will shrink by 11.2% overall this year and expand by 7.2% in 2021. The disbursement of EU rescue funds due to start in 2021 might boost GDP growth by 2 percentage points that year, according to Calvino.

(Reporting by Inti Landauro and Emma Pinedo Editing by Ingrid Melander)

((Inti.Landauro@thomsonreuters.com;))

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