Spain’s central bank expects a less severe recession, but remains the worst

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The central bank has said that Spain’s economy may contract less than expected this year, but despite that the recession will be almost three times worse than the record recession in 2009 during the height of the global financial crisis.
The central bank added that the economy may shrink between 9 percent and 11.6 percent in 2020 due to the implications of the Corona virus on the country dependent on tourism.
The previous scenario for the Spanish central bank was a contraction from 9.5 percent to 12 percent.
The impact of the general isolation measures that began in mid-March will be fully apparent in the second quarter, with the economy expected to shrink by 16 percent to 21.8 percent.
The economy shrank 5.2 percent in the first quarter, which is already the steepest since the record chain that started in 1970, and twice worse than the first quarter of 2009. The economy of Spain shrank 3.7 percent in 2009.
The Spanish central bank expects the economy to start recovering in the second half of this year, and that the gross domestic product in 2021 will grow from 7.7 percent to 9.1 percent, compared to a previous estimate of the bank ranging from 6.1 percent to 8.5 percent.





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