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  • Covid-19. The Government foresees a recession of 9.2% and an increase in unemployment to 19% that will not recover in 2021

The serious economic crisis caused by the coronavirus pandemic is going to unleash an even more devastating situation in the tourist regions of Spain and, especially, on the islands. The lack of tourists, the confinement of the population and the possible fear of traveling when restrictions are lifted thus advanced it, but the figures are already beginning to draw the magnitude of the problem: the Gross Domestic Product (GDP) of the Balearic Islands will collapse 17% while the Canary Islands economy will fall 13% .

These are figures, which BBVA Research has published today in its regional observatory, which seem almost absurd, totally illogical in developed economies and which far exceed the already extraordinary data for the country as a whole. The same research service predicts that Spain's GDP will decrease by 8%, so the fall of the Balearic Islands, for example, would double this figure. Consequently, employment will also suffer an extraordinary fall . In terms of the Active Population Survey (EPA), the decline in the Balearic archipelago will exceed 10%, while in the Canary Islands the figure will be 7.3%.

"The communities that are most dependent on tourism and social consumption activities will be the most affected and, moreover, their recovery will be slower", they explain from BBVA Research, stressing that "the Valencian Community, Andalusia and Murcia with growth of -8, 3%, and Catalonia of -8.2% would also show a loss of activity greater than the national average. "

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  • tourism
  • Balearics
  • Canary Islands

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