Economic Contraction Warning from the Central Bank of Spain

Economic Contraction Warning from the Central Bank of Spain

Spanish Central Bank President Pablo Hernandez de Cos said that the Covid-19 outbreak could harm the Spanish economy more than expected. Compiling the effects of the new type of coronavirus (Covid-19) outbreak on the Spanish economy, Hernandez de Cos informed the Parliamentary Economic Affairs Commission on the issue. Stating that the Central Bank of Spain revised downwards for the end of the year, Hernandez de Cos said: "An economic contraction of 6.6 percent to 13.6 percent was expected for the end of the year in April. But the data released so far showed that these forecasts are not very realistic. The current economic contraction forecast is between 9.5 percent and 12.4 percent. . "

Call for Financial Plan

The Chairman of the Spanish Central Bank, who invited the left coalition government to make a "financial plan" to reduce the damage suffered by the Spanish people, said the following: "It has become clear today that budget policy should also be accompanied by an open strategy to consolidate it. It will benefit us to review the structure and expenditures of the budget, to make public financing healthy." Hernandez de Cos, who finds the economic measures taken by the European Union within the scope of combating coronavirus so far, estimates that the ratio of public debt to Gross Domestic Product (GDP) may increase to 115 percent by the end of the year.