Spain sees worse-than-feared economic dip in 2020 amid Covid-19 pandemic

Spain’s government forecast on Tuesday a worse-than-feared contraction of the coronavirus-battered economy this year, but a strong rebound in 2021 with a possible return to pre-pandemic levels in 2022.

Economy Minister Nadia Calvino told a news conference the government now foresees GDP to fall 11.2 per cent in 2020, down from a previous prediction in May for a 9.2 per cent slump.

Spain is experiencing a second wave of Covid-19 infections, with the highest caseload in Western Europe.

With the economy suffering its deepest recession since the civil war, and the worst in the euro zone, the central bank warned