Catalan economy grows 16% in summer months but pandemic recovery still insufficient

The Catalan economy grew by 15.7% from July to September, making big gains during the summer months when businesses reopened after months of lockdown, but still insufficient to compensate for the coronavirus pandemic downturn.

Compared with 2019, Catalonia’s GDP fell by 9.1% in the third quarter of 2020, according to estimates by the IDESCAT statistics institute.

Spain’s economy shrunk by 8.7% from last year, while the average GDP fall for European Union countries was 3.9%.

During the first quarter of 2020, the Catalan GDP decreased 5.4%, as the Spanish economy started to feel the first shockwaves of the pandemic-induced crisis. The next quarter, covering the months of full lockdown, fell by 21.2%.

While the economy’s rebound made up for some of the losses, it has climbed only part of the way out of the hole dug during the first half of the year.

As Spain entered the second state of alarm in October, with Catalonia closing bars and restaurants and imposing severe restrictions on mobility, it’s less than clear that the positive trend will continue during the remaining months of 2020.