Spanish GDP Is Still Below Pre-Covid Levels, -3.2%, and So Are Corporate Profits, -6.2%

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Spain’s GDP remains -3.2% below pre-pandemic levels, after its historic fall in 2020 (-10.8%). It is last in the EU in terms of GDP recovery and also in terms of business profits: Spanish companies are some 11 points below the European average and, together with Portugal (-6.3%), Spain is the country showing the worst rate of recovery in business profits, which are still 6.2% below pre-covid levels, according to the Institute of Economic Studies (IEE).

According to the IEE’s short-term report, in the accumulated years 2020 and 2021 there has been a loss of almost 100,000 million euros (almost 65,000 in 2020 and 34,000 in 2021).

In almost all European countries, the Gross Operating Surplus (GOS) has not only recovered its pre-crisis levels, but has exceeded them “by far”, according to the IEE. For example, in the EU-27 as a whole, Gross Operating Surplus (GOS) is already 5% above the level at the end of 2019, and in the case of Ireland – another exceptional case, but on the positive side – this indicator is up to 26% above pre-crisis levels.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.