Para garantizarle una navegación por nuestra web segura y de calidad, le informamos que utilizamos Cookies. Si está de acuerdo clique ACEPTAR. Puede bloquear o eliminar las cookies instaladas en su equipo mediante la configuración de las opciones del navegador. Para más información consulte nuestra Política de Cookies
Acepto
Instituto Valenciano de Investigaciones Económicas

News

Household consumption could fall by 11.8% in 2020, with a projected severe contraction in the second quarter

The shutdown of most activities and the confinement measures introduced as a result of COVID-19 have affected household consumption at a faster pace than in previous crises. According to data from the Spanish National Statistics Institute (INE), household consumption already fell by 7.2% in the first quarter of the year as compared to the previous quarter. However, based on the estimates carried out by the Ivie, it is expected to fall even more —31.5%— between April and June, with an average decline by the end of 2020 of 11.8%, compared to the 16.6% drop in consumption during the great recession (2008-2013).

The quarantines, lockdowns, social distancing and travel restrictions are having a profound negative impact on activities such as hospitality, leisure, travel, cinemas and group sports. During the first quarter of the year, which included just two weeks of confinement, the trade, transportation and hospitality sectors shrank by 10.9%, while artistic, recreational and other services lost 11.2% of their value. Although these sectors are expected to be reactivated as the confinement measures are gradually lifted, they may still face limitations until effective treatments or vaccines become available. It is for this reason that the authors of the new COVID-19: IvieExpress report, Laura Hernández and Francisco Pérez, highlight the need to extend protection measures for workers and companies in these sectors.

12 May 2020