- Quote: ‘Most foreigners living in Spain seem to work in industries – which can be transferred online so they may be alright’.
By Andrew Atkinson
Spain’s economy will contract by almost 11 percent in 2020, following the impact of the COVID-19 pandemic, the European Commission forecast on July 7.
Economists predicted this could mean unemployment could rise from 14 per cent, being the latest figure released in April, to 23 percent by the end of the year.
Tourism would be the hardest hit by the slowdown, said Gayle Allard, a professor of economics at IE Business School in Madrid.
“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,” said Allard.
Tourism is amongst other key sectors, and Allard 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 in 2020 and rebound less steeply in 2021 than previously thought, the EC said, with France, Italy and Spain struggling most – due to coronavirus.
The 19 nations eurozone would contract by a record 8.7 per cent, before rising by 6.1 per cent next year.
The EC said it had revised earlier forecasts, because the lifting of lockdown measures proceeded less swiftly than predicted. Spain’s economy is expected to contract by 10.9 percent.