Economic activity in Spain is expected to fall 11.6% this year – according to report from Organisation for Economic Cooperation and Development (OECD).
A bounce-back in 2021 and 2022 will not make up for economic damage caused by the COVID-19 pandemic this year.
In Spain, not even the rollout of a vaccine and two years of uninterrupted growth – expected to be 5% in 2020 and 4% in 2021 – will bring output back to pre-crisis levels any time soon.
It will take a ‘vigorous’ 2023 just to get the economy back to that point, according to the Organisation for Economic Cooperation and Development (OECD), which has just released its December 2020 Economic Outlook.
According to this report, by the end of 2022 Spain’s gross domestic product (GDP) will still be 3.5% below what it was on December 31, 2019.
In a country that has experienced some of the worst coronavirus outbreaks and endured one of the world’s strictest lockdowns, 2020 will go down in contemporary history as the worst on record in times of peace.
Economic activity is expected to shrink by 11.6% this year, five tenths of a percentage point more than what the OECD was projecting in June, before the second coronavirus wave hit.