Spain : unprecedented drop in activity in 2Q20, despite gradual blockdown lifting

The fall in GDP in Q2 (-18.5% QoQ; -22.1% YoY) slightly exceeded expectations and confirmed the serious effects of the containment. Domestic demand suffered most of the adjustment (-16.1pp QoQ; -4.2pp YoY), but external demand also fell. The fall in hours worked was intense and productivity increased.

Key points

• Key points:
• Despite the gradual reduction of activity restrictions, confinement weighed historically on activity in 2Q20
• The adjustment was mainly concentrated on domestic demand
• As expected, all components of private demand experienced significant declines
• Construction and the sectors linked to "social consumption" were the most affected by the restrictions on activity
• Hours worked decreased more than activity, indicating better productive performance

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