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Portugal - Spain

The COVID crisis is one of the greatest challenges in the history of the EU and its response has been the “Next Generation EU” stimulus package worth Euro 750 billion, of which Spain is expected to receive Euro 69.5 billion and Portugal Euro 16.6 billion in grants and loans. The new stimulus money flowing into the two countries will help to transform and boost their economies. It is expected to create up to 140,000 new jobs in Spain and to boost the economy by 1% to 1.7%.

Spain’s President Pedro Sánchez has announced that the government is to commit Euro 4.3 billion towards kickstarting domestic production of electric vehicles and batteries. The expectation for this sector is to increase its weight in GDP from, at present, around 10% by up to 15% by 2030.

In general, the impact of the pandemic is easing as remaining restrictions are lifted, the tourism industry has started to recover and consumption is returning. As a result, the Bank of Spain has slightly raised its 2021 economic growth forecast from 6% to 6.2%. For 2022, growth is projected to increase from 5.3% to 5.8%. The Bank of Spain is expecting GDP to grow by 2.2% in the second quarter of 2021.

In general, supply of all forms of non-ferrous scrap is still low and will mostly remain that way until September. At the same time, demand for scrap is still strong - especially for copper, which is resulting in lower deductions. The secondary aluminium market is stable and demand in Europe remains strong.