The European Commission (EC) expects the Spanish economy to fall 10.9% in 2020, one and a half points more than it projected last May, due to the “unprecedented” contraction of activity in the first half of the year due to to restrictions to stop the pandemic, especially in the service sector.
Spain will be the second country in the European Union (EU) hardest hit by the crisis this year, second only to Italy, whose Gross Domestic Product (GDP) will decrease by 11.2%, and in line with the fall of 10, 6% that France will register, according to the summer macroeconomic forecasts published this Tuesday by the Community Executive.
Brussels expects the Spanish economy to begin to rebound in the second half as most restrictions are removed and that the recovery will continue in 2021, closing the year with growth of 7.1%, one tenth higher than the one forecast by the Commission in May .
The worsening forecast affects the entire European Union. For the eurozone, it now calculates a drop in gross domestic product (GDP) of 8.7% during 2020, and for the European Union (EU) it anticipates a decline of 8.3% this year. In its previous forecasts, published in May, Brussels expected the coronavirus pandemic to cause a GDP decline of 7.7% in the nineteen euro countries and 7.4% in the Twenty-seven.