Spain | DANA: Real-time monitoring of the economic impact

Most indicators show an improvement in economic activity in Valencia during the week of November 5 to 11, although both the growth rates and, more importantly, the levels remain below what would have been observed without the DANA, particularly in the hardest-hit municipalities, where significant impacts are still evident.

Key points

• Key points:
• The improvement in spending is almost entirely due to the recovery in purchases made with Spanish cards, which declined by -0.6% year-on-year in the week ending November 11, compared to -14.5% the previous week. Transactions made with foreign cards dropped by 6.9% year-on-year during the same period (-12.1% the week before).
• The lesser decline in spending was widespread across sectors. There was notable recovery in technology (the only sector showing a positive growth differential compared to the rest of Spain), leisure, sports, and dining. On the other hand, travel, accommodation, automotive, fashion, and home goods continued to show much weaker trends compared to the rest of Spain.
• Year-on-year changes in cash withdrawals returned to positive territory in the week following the DANA (1.5% year-on-year), contrasting with the previous period’s decline (-17.2% year-on-year). However, the growth gap with the rest of Spain has yet to close.
• Spending recovery remains uneven—stronger at the regional level than at the municipal level, with significant variability. The most affected areas are beginning to recover their spending, though stagnation persists in others.

Authors

Geographies

Topics

Tags