Natixis IM: “Spain is going to suffer because tourism is going to be a source of weakness”

According to the analysis of Philippe Waecther , head of economic research at Ostrum AM, manager of Natixis Investment Managers, the impact of the crisis derived from the coronavirus on the Spanish economy “will last until the summer “, because the end of the blockade will not It will take place until the contagion by Covid-19 ends since “the borders to non-Spanish tourists will have to be opened in a coordinated movement with the rest of European countries once the blockade of the economies ends.” In this sense, the specialist affirms that “Spain is going to suffer because tourism represents 11% of its GDP, and this is going to be a source of weakness for its economy over the next few months.”

Natixis IM: “Spain is going to suffer because tourism is going to be a source of weakness”

Waechter predicts that the recovery of the Spanish service sector “will take a long time since that industry has been heavily damaged by the blockage ” of economic activities. And, as he points out, services linked to consumers have collapsed with the blockade and ” social distancing will limit the possibility of a recovery”, given that “tourism will be the last to emerge from the blockade.”

Finally, Waechter points out that “the Spanish service sector will recover, as in all European countries, in a long time”. Services have been severely weakened by the blockade. We must make a distinction. Business services have been the least affected by the closure according to the Bank of France survey for France (we can probably extend this result to Spain). But “services linked to consumers have collapsed with the blockade” (again according to the Bank of France).