Spain | Historic collapse of GDP in 1Q20 with only two weeks of confinement

Summary

GDP decreased by -5.2% QoQ (-4.1% YoY) in Q1, more than expected, revealing a significant effect of the confinement. Although domestic demand supported most of the adjustment (-5.4pp QoQ; -4.2pp YoY), external demand also drained growth (-0.2pp QoQ; 0.2pp YoY).

Key points

• Key points:
• The confinement during the last half of March hampered activity in 1Q20 more than expected
• Domestic demand supported most of the adjustment
• All components of private demand experienced significant declines
• Services and construction sectors were the most affected by the confinement
• Hours worked decreased more than the number of employed people

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