Spain’s macro outlook: Rising COVID-19 cases dampen economic forecasts
Raymond Torres and María Jesús Fernández
Spanish economy, Economic forecasts, COVID-19
In the context of controlled growth in COVID-19 cases and sluggish performance in key sectors, such as tourism, a downward revision of Spain’s forecasts shows a 13% contraction expected for 2020, with pre-COVID growth levels unlikely to return before 2023. The European recovery fund could support Spain’s recovery, but its impact will be limited and short-lived, unless it is accompanied by key reforms.