The Spanish health officers on Wednesday reported a total of 2,128 COVID-19 victims and 47 confirmed deaths across Spain. The report equally admitted the noteworthy burden on the health condition in Madrid. This rounds Spain second to Italy as regards the EU countries worst-hit by the epidemic.
As one of the overwhelming impacts rendered by the novel coronavirus on Spain’s economic growth, a report by the international economic institution in January saw a cut down in Spain’s economic growth projection to 1.6% in 2020 from the previous 1.8% and a boost in its deficit goal to 1.8% of GDP, which is lower than 2019’s estimated 2%.
On the other hand, the International Monetary Fund, IMF, on Wednesday anticipated a more deep slowdown than the initial procrastination (lower than 1.6%); as the impacts of the coronavirus, outbreak continue to override economic activities chiefly, the tourism sector.
Andrea Schaechter, the chief of mission-IMF, agrees on a slower growth than 1.6% as she elucidated over a conference call “Clearly the economy is already affected, the extent of this impact depends on the duration of the outbreak,”. She recognizes the service department as “more vulnerable” principally the tourism sector which estimates for up to 12% of Spain’s economy. She quoted the ongoing booking cancellations as strong evidence.
An IMF on the mission said that Spain ought to be permitted to hold off on structural deficit cuts for 2020, while it assumes a measure to assist the health department and its economy among a mounting coronavirus rife.
Relating to other concerns in Spain, the IMF said, with the vital socio-economic variations prevailing in Spain, a drop of short-term contracts should be a prime basis if greater equality is to be realized. The IMF also cautioned for the necessity to implement fiscal measures to lessen debt and pension deficit.
“Over the medium term, reducing public debt and the fiscal the deficit remains critical, particularly given rising social spending pressure,” the IMF mission stated.
The Spanish government has however pledged to do all it takes to overthrow the coronavirus crunch. In his first public appearance (last Tuesday) since the rapid spread of the coronavirus, Pedro Sanchez, Spanish Minister of health communicated “difficult weeks” while maintaining that the government will consider all measures to overcome what he referred to as a “health emergency”.