THE fall in domestic demand, as a consequence of restrictions on mobility, will cause the largest drop in GDP since the Civil War, However, in 2021 it foresees a growth of 6.8 per cent.
According to new economic forecasts published today by the government, the coronavirus crisis will cause a collapse of Spain’s economy of around 9.2 per cent.
This is the largest drop in GDP since modern records have existed and the biggest collapse since the Civil War. The Executive assumes that the drop in activity will be very intense and that the recovery of 2021 will not be enough to recover the level of GDP that existed before the coronavirus crisis.
The new macroeconomic scenario estimates a growth forecast of 6.8 per cent in 2021. Therefore, the recovery will take a “V asymmetric shape” explained the vice president of economic affairs, Nadia Calviño.
The Executive has updated its forecasts as they have an obligation to send their Stability Programme and the National Reform Plan to Brussels. This growth forecast is amongst the most pessimistic of those published in recent days by various organisations and analysis houses.