At the end of the second quarter of this year, the Spanish economy collapsed by 18.5 percent. This is reported by Bloomberg, calling the country the most affected by the crisis in Europe. The drop was higher than economists have predicted, who had said it would fall by 16.6 percent.
Recovery of indicators is expected in the third quarter, but there are no hopes for rapid growth. Recovery is hindered by the failed holiday season and fears of a second wave of coronavirus. Over the past three months, the decline occurred in almost all sectors of the Spanish economy, but the most severe restrictions due to COVID-19 affected retail, transport, tourism, and restaurant business. Together, these areas lost up to 40 percent.
The restrictive measures led to an increase in unemployment, which jumped by 15 percent. According to market participants, by the end of the year, tens of thousands of small and medium-sized enterprises will become bankrupt in the country.
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In total, the Eurozone economy shrank by 14.4 percent in the second quarter, which was the strongest decline since statistics began. The GDP of Germany, which is considered the main economy in Europe, fell by 10.1 percent, and France-by 13.8.