A Fourth Estate® Service

Tuesday, March 2, 2021

New COVID-19 Restrictions Hit Spain’s Economy

Fresh COVID-19 restrictions imposed by the Government of Prime Minister Pedro Sanchez in Spain’s two regional economic powerhouses Madrid and Catalonia, have severely affected the nation’s growth forecasts and angered business leaders.

Fresh COVID-19 restrictions imposed by the Government of Prime Minister Pedro Sanchez in Spain’s two regional economic powerhouses Madrid and Catalonia, have severely affected the nation’s growth forecasts and angered business leaders.

The new lockdown measures imposed in Barcelona and the capital city is already hurting private businesses and rising unemployment, and it could affect the economy of these two regions to the point where it could reach the levels of unemployment seen during the 2008 crisis. 

Madrid and Catalonia together account for nearly 40 percent of Span’s economic output and are home to most of the nation’s big companies, as well as the cornerstones of the Spanish economy such as the manufacturing sector and tourism.

During an interview with the Spanish media outlet El Español, the deputy chief of business lobby group CEOE Iñigo Fernandez de la Mesa said that if the government maintains the restrictions in the two regions, it will have a “catastrophic impact on the country’s economy.”

The current situation corresponds with the group’s more pessimistic forecasts at the start of the COVID-19 crisis in March, predicting this year’s gross domestic product would drop between 13 and 14 percent.

Article © 2021 Fourth Estate® — All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Recent Articles

Get the Daily NewsBrief in your inbox

Related Stories