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Central Bank – Spanish economy shrinks up to 21.8 percent | message


Madrid (Reuters) – According to the domestic central bank’s forecast, the Spanish economy will collapse by about a fifth in the second quarter due to the Corona crisis.

From April to June, the gross domestic product should fall between 16.0 and 21.8 percent compared to the previous quarter, according to the forecast published on Monday. That would be a negative record. Even if the economy should pick up again in the second half of the year, the bottom line for 2020 will be a decrease of nine to 11.6 percent.

Spain is particularly hard hit by the pandemic, which is why the government imposed particularly stringent restrictions in the fight against the pathogen, which have since been eased. In the first quarter, the gross domestic product had fallen by 5.2 percent, more than ever before. For comparison: the German economy only shrank by 2.2 percent.

Spain is now drumming for a return of tourists after the Corona mandatory break. As of July 1st, quarantine rules should cease to apply. Tourism contributes about twelve percent to economic output and creates numerous jobs. Usually around 80 million people spend their holidays in the southern European country. Summer business is seen as key to mitigating the expected recession.

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