The Spanish economy went into technical recession in the second quarter of the year after registering a 17.8% drop in GDP between April and June. This is the biggest quarterly fall in the National Statistics Institute (INE)’s historical series which began in 1970. That said, this decline has been less than was anticipated at end-July. At that point, and in the absence of some data, the INE estimated that GDP would have declined by 18.5% in the second quarter.
Spain household consumption
The Spanish economy is entering a more mature phase of the cycle and, therefore, its growth is gradually slowing down to levels that are more sustainable in the long term. In this context, CaixaBank Research wonders what trends can be expected in the main driver of the economy: private consumption. Following are their conclusions.