Spain | The Mediterranean regions, protagonists of a more markedly V-shaped recovery

Summary

The spread of COVID-19 has had an unprecedented impact on the Spanish economy on various fronts. The lockdown that began in March did not last 15 days as initially thought, but ultimately went on for over 90 days.

Key points

• Key points:
• The largest impact of the lockdown restrictions was on domestic demand, and especially on expenditure in a social context.
• This reduced expenditure is concentrated in goods and services, primarily domestic products. Moreover, the tourism industry has collapsed.
• Falls in GDP of over 15% are expected in the Balearic Islands and the Canary Islands, given their high dependency on overseas tourism expenditure and the fact they are accessed by mass transit.
• Domestic holiday destinations, and places that see the highest levels of social expenditure, such as the Mediterranean coast, are also among the worst hit areas.
• Economies more inclined toward the production of tradable goods and services, and oriented to overseas markets, have given rise to a boost in activity for Aragon, Navarre, La Rioja and the entire Cantabrian axis.

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