According to the preliminary data published on Friday by the National Institute of Statistics (INE), the Spanish economy contracted by 22.1% over the last year. Meanwhile, activity in Germany decreased by 10.1% in the first quarter of 2020 and by 9.5% in the USA and 13.8% in France. With two consecutive quarters in negative territory, Spain is now officially in recession.
The data is especially striking in the areas of consumption and investment. Specifically, investment in tangible fixed assets decreased at an interannual rate of 30.8%, which represents 22.4 points more than in the previous quarter. By component, investment in housing and other buildings decreased by 22.6 points, from −8.3% to −30.9%, whilst investment in machinery, capital goods and weapons systems decreased by 23 points to −32.3%, compared to −9.3% in the previous quarter.
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