Spanish Economy Contracts by 5.2 Percent in First Quarter

Spanish Economy Contracts by 5.2 Percent in First Quarter

Spanish economy registered the biggest ever quarterly fall of 5.2 percent in over a century. The first quarter GDP in Spain declined by 5.2 percent but the worse might not be over yet. As per Bank of Spain, the economy could face a decline between 6.6 percent and 13.6 percent for the current year, due to coronavirus lockdown.

Spanish government is considering opening up certain regions with lower infection rates. Also, Spanish government is facing public outrage over handling of coronavirus pandemic as Spain has the highest number of infections in Europe. Italy has suffered the highest number of death cases in Europe, followed by Spain. Spain has been slowly crawling back after facing tough economic times over the last few years but the big blow from coronavirus will make things ever more difficult for small business owners.

During 2008-2009 global recession, Spanish economy contracted by 2.6 percent (during first quarter of year 2009). The fall due to coronavirus pandemic has been quick, compared to the slow decline during the 2008 global recession. Between year 2008 and 2013, the GDP in Spain declined by 9.5 percent.

National Statistics Institute (INE) released a statement about Spanish GDP. INE added that it had gone to extra lengths to accurately represent the impact of the confinement measures on economic activity in the last two weeks of March.