The Crisis will Cause GDP to Fall by More than 10% in the Islands and by 8% along the Mediterranean Coast, but those Areas will Lead the Recovery in 2021

8 May 2020 – Brainsre.news

The Balearic Islands (-17%) and the Canary Islands (-13%), as well as the entire Mediterranean coast (-8%), are leading the falls in GDP during this crisis but are expected to recover more quickly in 2021.

The Balearic Islands (-17%) and the Canary Islands (-13%), as well as the entire Mediterranean coast (-8%), are leading the falls in GDP during this crisis but are expected to recover more quickly in 2021, boosted by the engine of the Spanish economy but also the sector most affected by the crisis, tourism.

BBVA Research’s Regional Observatory estimates that the recovery this year will depend on “the duration of the restrictions, how they impact the capacity used and the public policies to mitigate them.” In this way, after the strong GDP contractions of 2020, the Balearic Islands and the Canary Islands will be the autonomous regions with the highest growth rates, of 9.6% and 7.8%, respectively. However, their absolute GDPs will still be 5% below the levels reached in 2019.

Original Story: Brainsre.news

Translation/Summary: Carmel Drake

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