Tourism in Spain to be hit hard as economy set for deep recession
The economic outlook for Spain is far from positive, particularly for the tourism sector, according to new figures and economists.
The Spanish economy will contract by nearly 11 percent this year because of the impact of the COVID-19 pandemic, the European Commission forecast on Tuesday.
Economists predicted this could mean unemployment could rise from 14 percent - the latest figure released in April, to 23 percent by the end of this year.
Key sectors like tourism would be the hardest hit by the slowdown, Gayle Allard, a professor of economics at IE Business School in Madrid, told The Local.
“The latest figures for unemployment are from the first quarter of the year before the coronavirus epidemic started. If we take this predicted downturn, it could mean this will rise as high as 23 percent this year,” she said.
“Some sectors will be harder hit than others. How it affects you, depends on what you do. Most foreigners living in Spain, seem to work in industries which can be transferred online so they may be alright.”
The eurozone economy will drop deeper into recession this year and rebound less steeply in 2021 than previously thought, the EC said, with France, Italy and Spain struggling most because of coronavirus.
The 19 nation eurozone would contract by a record 8.7 percent before rising by 6.1 percent next year.
The EC said it had to revise earlier forecasts because the lifting of lockdown measures proceeded less swiftly than predicted.
Spain's economy is expected to contract by 10.9 percent.
In Germany, where widespread testing has helped limit fatalities, the 2020 downturn would be 6.3 percent.
The rebound in Germany in 2021 is, however, expected to be less pronounced than previously estimated.
Comments
See Also
The Spanish economy will contract by nearly 11 percent this year because of the impact of the COVID-19 pandemic, the European Commission forecast on Tuesday.
Economists predicted this could mean unemployment could rise from 14 percent - the latest figure released in April, to 23 percent by the end of this year.
Key sectors like tourism would be the hardest hit by the slowdown, Gayle Allard, a professor of economics at IE Business School in Madrid, told The Local.
“The latest figures for unemployment are from the first quarter of the year before the coronavirus epidemic started. If we take this predicted downturn, it could mean this will rise as high as 23 percent this year,” she said.
“Some sectors will be harder hit than others. How it affects you, depends on what you do. Most foreigners living in Spain, seem to work in industries which can be transferred online so they may be alright.”
The eurozone economy will drop deeper into recession this year and rebound less steeply in 2021 than previously thought, the EC said, with France, Italy and Spain struggling most because of coronavirus.
The 19 nation eurozone would contract by a record 8.7 percent before rising by 6.1 percent next year.
The EC said it had to revise earlier forecasts because the lifting of lockdown measures proceeded less swiftly than predicted.
Spain's economy is expected to contract by 10.9 percent.
In Germany, where widespread testing has helped limit fatalities, the 2020 downturn would be 6.3 percent.
The rebound in Germany in 2021 is, however, expected to be less pronounced than previously estimated.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.