Unicaja Banco’s latest economic predictions for the Andalucian region has forecast that the region’s economy will shrink by around 11.5 per cent and cause a spike unemployment of around 8 per cent by the end of the year, as a result of the coronavirus pandemic.
In the best case scenario, 27.3 per cent of the working age population could be unemployed, according to economic analysts of Andalucia. However, if things don’t return to normal until the end of the year, the region could face 29 per cent of jobless people, resulting in huge financial difficulties for almost a third of the region’s population.
However, on a positive note, the analysts believe the economy will pick up next year. The analysts predict an optimistic recovery of up to 8.1 per cent for 2021, but still lower than pre Covid-19 levels. That could result in unemployment falling to around 23.7 per cent if the recovery happens sooner. However, the analysts warned that the unemployment rate could remain above 25 per cent if the recovery is delayed until later on in the year.
As the analysts have based the projections on the State of Alarm lasting two months, they stress that the projections are ‘just approximations,’ and subject to change, because of the many other factors involved.