Spain’s GDP Shrinks 18.5% in Europe’s Worst Contraction Yet
- Economists had expected Spanish output to contract by 16.6%
- Consumer spending, investment were main drags on economy
A pedestrian passes a shuttered business in Madrid, Spain.
Photographer: Angel Navarrete/BloombergThis article is for subscribers only.
Spain’s economy suffered a bigger blow than expected in the second quarter, leaving it with a long recovery that’s become even tougher after a new hit to its vital tourism industry.
The record 18.5% drop in output -- led by plunges in consumer spending and investment -- is the deepest reported so far in Europe, where restrictions to control the coronavirus battered businesses and households. Economists had anticipated a 16.6% contraction.