Spain’s construction output will contract by 10.4% in 2020, says GlobalData

Following the release of data from the Spanish statistical office showing a steep fall in construction output in the second quarter of 2020;

Moustafa Ali, Economist at GlobalData, a leading data and analytics company, offers his view:

“Spanish construction output contracted by 24% in the second quarter on a quarterly basis. The sharp fall in construction output reflects the lockdown measures imposed by the Spanish government in April and May, and it is line with GlobalData’s expectations of a sharp fall in output in the second quarter.

“GlobalData forecasts that construction output will contract by 10.4% in Spain in 2020, with the steep contraction in Q2 2020 being partially offset by the general improvement in economic conditions coupled with the easing of the lockdown measures in the second half of the year.

“However, there are downside risks to the prospect of a solid recovery in the second half, particularly with the recent spike in cases across the country and the prospect of a lockdown. On a yearly basis construction output is also markedly down, on a year-on-year basis output is down is down by 29.9% in Q2 2020 compared to Q2 2019. Employment in the Spanish construction sector decreased significantly in the second quarter, with total hours worked falling by 20% on a yearly basis.”

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