Historical downsizing in the Spanish economy
Historical downsizing in the Spanish economy – The Spanish economy shrank 18.5 percent in the second quarter of this year compared to the previous quarter, recording a historic contraction
The Spanish National Statistical Institute has announced its leading quarterly growth data.
Accordingly, Spain, which is one of the countries that suffered the most from the new type of coronavirus (Covid-19) epidemic, shrank 18.5 percent in the second quarter after a 5.2 percent contraction in the first quarter.
The Spanish economy contracted by 22.1 percent in the second quarter compared to the same period last year.
The country’s economy was expected to shrink by 16.6 percent on a quarterly basis and 19.7 percent on an annual basis in the second quarter of this year. Thus, while the country’s economy contracted above expectations, the announced figures went down in history as the biggest “decline” recorded in the Spanish economy since 1970.
In the country, consumption per household decreased by 21.2 percent and capital accumulation decreased by 21.9 percent.
Historical collapse in the economy
On the other hand, after the announcement of the data, the Spanish press wrote the title as “historical collapse in the economy”.
While the unemployment rate in the country was announced as 15.6 percent, it is estimated that this rate will increase to 23.6 percent at the end of the year if the Covid-19 crisis grows.
The European Union (EU) Covid-19’s recovery package, which has been adopted to alleviate its effects on the economy, is expected to receive 140 billion euros in total, which is the country that Italy will provide the most aid after Italy.