Regional Analysis Spain. Second quarter 2020

The health crisis and the limitation of movement are the main factors in the contraction of activity. Regions exposed to "social consumption" sectors are more affected. The importance of "essential activities" may be sustaining production in some central communities.

Key points

• Key points:
• The impact of the crisis is substantial, but with heterogeneous effects from a territorial point of view.
• Recovery in 2020 will depend on the duration of the constraints, how they impact on capacity utilization and on public policies to mitigate them.
• As movement restrictions are lifted and industrial production resumes, communities in the Centre and North may begin to recover by the end of the year.
• The progressive return of activity in sectors affected by the confinement (tourism, commerce and hotels) will extend the improvement to the Levante and islands in 2021.

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