Spain to go into a recession about three times as bad as 2009
Spain’s economy may shrink less than feared this year, but the recession will nevertheless be about three times as bad as the record contraction of 2009 at the height of the global financial crisis.
Spain’s central bank said the economy could contract by 9% to 11.6% in 2020 as the fallout from the coronavirus pandemic hits the tourism-dependent country more than others in Europe.
Spain’s economy shrank by 3.7% in 2009.
The impact of the lockdown that started in mid-March will be fully felt in the second quarter, with a contraction of around 16% to 21.8%, the central bank said.
The first quarter’s 5.2% contraction was already the sharpest drop since the records began in 1970 and twice as much as the worst quarter of 2009.
The Bank said “in the short term, the economy is going to contract further.
It will take a little longer to recover, but in 2021 the recovery will be better than the euro zone average.
As much of Spain further relaxed measures yesterday, the Health Ministry reported the lowest number of new coronavirus infections since early March.
Just 48 people were diagnosed with COVID-19 that is less than half of the infections reported on Sunday and the lowest number since before the lockdown.
The ministry also confirmed no new deaths, but reported that 56 people have died of the disease over the past week.