Spanish economy takes biggest hit among euro economies

Several screens display values of Spanish main stock market index IBEX 35 at Madrid's Stock Exchange Market, in Madrid, Spain, 12 October 2020. [EPA-EFE/VEGA ALONSO]

The Spanish economy, which has been severely hit by the COVID-19 crisis, will shrink by 12.8% this year, predicted the International Monetary Fund (IMF) in its newest forecast released yesterday (13 October), EUROEFE reported.

The Spanish government predicted that the country’s GDP would fall by 11.2% this year.

The coronavirus crisis, which has mostly impacted the country’s tourism and services sectors, which account for around 15% of Spain’s total GDP according to 2019 data, has been devastating with a catastrophic summer season and sombre hopes for the winter season, Spanish media reported.

Spain has been one of Europe’s hardest-hit countries during the pandemic as it recorded a total of about 836,000 COVID-19 cases. Currently, 10,000 new infections are being reported on average each day with the majority being recorded in Madrid, which is reliving a state of alarm for two weeks to contain new outbreaks. (EUROEFE /MADRID)

Subscribe to our newsletters