Covid 19

Covid 19 – Economic and social impact

The expansion of the coronavirus (Covid-19) and the state of alarm decreed throughout the country are going to have – they are already having – serious effects on the economy and society.

Funcas, in its work of dissemination and economic and social dissemination, creates this information space in which it will publish all the documentation it produces related to this extraordinary situation.

Articles, videoblogs, posts, publications in the press will be at your disposal with the aim of helping to follow the scope and impact of the pandemic, not only in Spain but in the rest of the world, and to participate in the debate on the necessary measures. to alleviate its consequences.



Spain’s household and corporate accounts: Two years after the pandemic

Although the recovery in Spanish GDP was somewhat less intense than initially expected
in 2021, the recovery in employment was noteworthy and stronger than anticipated. Against
that backdrop, two years after the onset of the pandemic, the financial health of Spain’s
households remains solid, whereas that of the corporate sector has somewhat deteriorated.


Strong recovery in 2021 tax revenue: Contrasting with the previous crisis

The contraction in 2020 tax receipts as a result of the pandemic and the associated mobility and
business restrictions was mitigated by the government´s crisis response measures. In contrast
to the wake of the previous crisis of 2008, in the space of just one year, 2021 tax revenue
increased 15.1%, topping pre-pandemic levels- a trend that, under current assumptions, is
expected to continue into 2022, albeit at a slower pace.


Financial digitalisation in Spain in the wake of the pandemic: Assessing the impact

The pandemic has accelerated the push towards digitalisation in Spain on multiple fronts. This
trend has been particularly significant within the financial arena, with Spaniards increasing
reliance on online banking and payments methods, as well as their interest in crypto-assets, while at the same time taking into account the growing importance of related security measures.


State guarantees and latent non-performance

Spain´s public guarantee scheme has served to ease the effects of the pandemic and now
of the war on the country´s business segment, thus containing the materialisation of nonperforming
loans. Going forward, while a potential increase in the incidence of business
non-performance is expected in the near-term, the increase in NPL coverage should be
mitigated by the strong provisioning efforts of the banks, together with their limited exposure
thanks to the state guarantee scheme.


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