Spain’s Economy Faces Long-lasting Pandemic Drag, Warns Central Bank

Spain’s economy will struggle to recover from the impact of the coronavirus pandemic to such an extent that it will still be as much as 6 per cent smaller at the end of 2022 than it was before the crisis hit, according to the Bank of Spain, the Financial Times reported. In a grim set of economic projections released on Wednesday, the central bank highlighted the destructive impact of both the initial coronavirus outbreak and of the resurgence in infection rates following the end of the country’s lockdown in June. Spain’s economy contracted a record 18.5 per cent in the second quarter of this year compared with the previous three months, following a 5.2 per cent first-quarter contraction. The central bank expects a rebound of between 13 and 16.6 per cent in the third quarter. Read more