Spain | Madrid Economic Outlook 2020

Summary

The GDP of Madrid may shrink by 11.3% this year and grow by 5.4% in 2021, losing 29,000 jobs. The impact of the crisis was heterogeneous by sectors, municipalities and personal characteristics. Public policies allow for less job destruction, but risks push the perspectives downward.

Key points

• Key points:
• By the end of 2021, Madrid's GDP could be 6.5% below the 2019 closing level.
• The importance of social spending and the weight of tourism (domestic and foreign) contribute to a greater impact on family spending.
• Heterogeneous impact on employment by sector and personal characteristics. The territorial impact does not show great differences, but those seen are linked to exposure to tourism and social spending.
• A broad consensus is needed to take the necessary public recovery measures.
• Controlling the pandemic is the main uncertainty. The sectors most affected in the first wave could drag others down.

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