Spain | A turning point in activity?

Summary

Economic activity in Spain is seeing a historically sharp drop. The 5.2% decline in GDP in the first quarter of the year can be explained only if we consider that it dropped by 30%–40% over the last two weeks of March.

Key points

• Key points:
• Restrictions placed on activity were even stricter at the start of April. This could have caused GDP to drop by up to 50% at the beginning of the second quarter.
• The available data suggest that although demand remains constrained, it has not worsened.
• Income support measures have helped sustain expenditure on food, health and utilities.
• On a positive note, it is worth highlighting that job destruction has not been proportional to the decline in GDP.

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