Spain is a very important country in the world, however it needs to undergo serious systematic market reforms. The coronavirus crisis has destroyed Spain’s economy leading to its worst recession since the civil war, and the low tourism and shutdowns make a recovery seem very far away. Spain had one of Europe’s largest outbreaks and strictest lockdowns so their economy came to a stop in March and stayed that way up until the end of June. It shrank 18.5 percent in the second quarter, a drop so harsh that it wiped out all of the recovery achieved since the 2008 global financial crisis. The government relied on tourists from northern Europe and further to contribute to a third quarter recovery, but quarantines and travel advisories have ruined this as Spain has new localised outbreaks of Covid-19. Their tourism numbers decreased even more when Britain required all travelers to Spain to quarantine when they arrived home and Germany put three Spanish regions, including Catalonia and Barcelona, on its list of high-risk areas. Spain normally received about 80 million tourists annually and has depended on tourism for about 12 percent of economic output. Spain needs to start reforming to make a recovery from its sufferings this year.
https://www.reuters.com/article/us-spain-economy-gdp/spain-dives-into-deep-recession-tourism-woes-bode-ill-for-rebound-idUSKCN24W0WF
1 comment:
I agree that they need to start reforming just like other countries that are experiencing similar issues. I think Covid is the realization that they can't just rely on tourism. They can still have tourism, but they need something to rely on even in an economic downturn.
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