After falling sharply in 2020, GDP is projected to increase by 3.7% in 2021 and 4.9% in 2022. Consumption will strengthen, with a gradual reduction in saving, as the sanitary situation improves and containment measures are phased out. Strong activity in the manufacturing sector and the absorption of EU funds will support investment and exports. Tourism and contact-intensive services will recover only gradually, until the pandemic is fully under control.
Fiscal policy should remain supportive until the recovery is firmly underway, but financial support should target distressed firms that have still viable prospects. Unemployment has increased, especially for low‑skilled and young workers, calling for reinforcing the capacity of public employment services to provide job search support and training. Accelerating the implementation of the Recovery and Resilience Plan, while promoting competition-friendly regulation, efficiency gains in public services and green investment, will be key for a strong and sustainable recovery.