Spain’s economy slumps 5.2%

View of the empty hall of the Son Sant Joan's Airport in Palma de Mallorca taken on April 30, 2020, during a national lockdown to prevent the spread of the COVID-19 disease. - AFP

MADRID: Spain’s economy shrank 5.2% in the first quarter, bringing to an abrupt halt six years of robust growth that had pulled the country out of the last major crisis.

That contraction was deeper than the 4.3% drop that economists surveyed by Bloomberg had forecast.

France reported a 5.8% decline in output in the first three months of the year, the most since records began in 1949. An estimate for the eurozone is expected to be similarly downbeat.

Spain’s data is a harbinger of bleaker numbers, with a double-digit slump forecast for the current quarter.

The government ordered one of Europe’s strictest confinements starting in mid-March, which means that first-quarter data only takes into account around 15 days of the economic freeze.

Spain’s statistics agency INE said the difficulty of measuring economic output during the confinement means that future revisions on first-quarter data are likely be “of a greater magnitude than usual.” — Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Spain , economy , slumps , growth


Next In Business News

China's power crunch dwarfs Evergrande's troubles in investors' eyes
AEON Credit Q2 net profit up 46% to RM75.5mil
MRCB buys out George Kent's stake in LRT3 project joint venture�
Tropicana posts higher property sales in Q2�
PAAB may face cash flow deficit of up to RM235mil - Audit
Boustead Plantations sells Kulai estate to SIPP Power for RM428.8mil�
Bursa Malaysia ends at intra-day high on continuous buying support
NPC withdraws offer to sell estates in Sabah to IOI Corp�
Audit: SilTerra advised to reduce wafer scrap rate, operating expenses
S&P: Delta, defaults and China reset rattle AsiaPac credit conditions

Stories You'll Enjoy