.

1. Source: Círculo de Empresarios based on INE, 2020.
1 Food, drinks, tobacco, household cleaning, pet food or personal care.
2 Rent, water distribution, garbage collection, electricity or telephone services.
-5
-3
0
3
5
2006 2008 2010 2012 2014 2016 2018 2020
-6
-4
-2
0
2
4
6
-15
-10
-5
0
5
10
15
20
25
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
Jul-18
Jan-19
Jul-19
Jan-20
Unemployment
Average number of affiliates (right axis)
-0.7
-2
0
2
4
6
Apr-07
Apr-08
Apr-09
Apr-10
Apr-11
Apr-12
Apr-13
Apr-14
Apr-15
Apr-16
Apr-17
Apr-18
Apr-19
Apr-20
National Accounts, Spain
The lockdown and economic hibernation
measures adopted to halt the spread of
Covid-19 have contracted GDP by 4.1% in
Q1 2020, the worst figure since Q2 2009
(-4.4%).
In the domestic demand, the fall in private
consumption (–6.7% year-on-year) and
investment (-5.5%) stand out against the
increase of public spending by 3.6%.
Foreign sector exports of goods and services
fell by 6.43% year-on-year (vs +3.3% Q4 2019)
and imports by 7.4% (vs +2.1% Q4 2019).
On the supply side, the sectors most affected
were construction (-8.6% year-on-year) and
the service sector (-4.1%). Agriculture fell by
2.5% and industry by 2.2%.
Labour market, Spain
In April, unemployment rose by 8% compared
to March (+282,891 people), reaching a total
of 3,831,203 unemployed people. In year-on-
year terms, the increase was 21.1%, a figure
similar to January 2010.
In this context, provisional data on
unemployment benefits registered in April
have been a total of 5,197,451, the highest
amount in the historical series. This implies a
volume of resources of €4,512 million.
The average number of workers affiliated to
the Social Security System in April fell by
2.88% compared to the previous month
(548,093 people), reaching 18,458,667
workers. In comparison to the same month of
2019, the fall was 4.01%, the biggest since
January 2013.
By sectors, the biggest year-on-year decrease
was in construction (-10.4%), followed by the
service sector (-3.7%), industry (-3.4%) and
agriculture (-2.1%).
CPI, Spain
In April, the forecasted CPI rate was -0.7%
year-on-year, compared to +1.5% in the same
month of the previous year. This
development can be explained by the fall in
prices of petroleum and fuel.
By type, prices for goods in the “special
Covid-19 goods group” increased 3.2%, while
those in the “special Covid-19 services
group” fell by 4.3% year-on-year.
Economy…
at a glance May 2020
Source: Círculo de Empresarios based on INE, 2020.
CPI, Spain
YoY change (%)
Labour market evolution, Spain
YoY change (%)
Source: Círculo de Empresarios based on Ministry of Labour, Migrations &
Social Security, 2020.
GDP Quarterly Evolution, Spain
YoY change (%)

2. ‘Economy at a glance’, a publication of the Círculo de Empresarios produced by its Department of the Economy, contains information and opinion from reliable sources. However, the
Círculo de Empresarios does not guarantee its accuracy and does not take responsibility for any errors or omissions. This document is merely informative. As a result, the Círculo de
Empresarios is not responsible for any uses that may be made of the publication. The opinions and estimates of the Department can be modified without prior warning.
www.circulodeempresarios.org
-13
-10
-8
-5
-3
0
3
5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
YoY change QoQ change
165
175
185
195
205
215
225
210
220
230
240
250
260
270
Mar-15
Jul-15
Nov-15
Mar-16
Jul-16
Nov-16
Mar-17
Jul-17
Nov-17
Mar-18
Jul-18
Nov-18
Mar-19
Jul-19
Nov-19
Mar-20
Imports
Exports (right axis)
-10
-5
0
5
10
15
20
1980Q1
1982Q1
1984Q1
1986Q1
1988Q1
1990Q1
1992Q1
1994Q1
1996Q1
1998Q1
2000Q1
2002Q1
2004Q1
2006Q1
2008Q1
2010Q1
2012Q1
2014Q1
2016Q1
2018Q1
2020Q1
GDP, Eurozone (Eurostat)
In Q1 2020, Eurozone GDP fell 3.8%
compared to the previous quarter (–3.3%
year-on-year), its biggest fall since quarterly
reporting began in 1995. This data is due to
the impact of the lockdown measures
imposed by many countries in March due to
the spread of the coronavirus.
Preliminary GDP data from the main
economies in the region shows the biggest
decline took place in France (-5.8% quarter
on quarter), followed by Spain (–5.2%), Italy
(–4.7%) and Germany (between -1% and
-1.5%).
For Q2 2020, a sharper drop is forecast
(around -10.1%) due to the prolongation of
the lockdown measures.
Foreign trade, US
In March, exports of American goods and
services fell 9.6% compared to the previous
month, reaching $187.7 billion.
Imports fell 6.2% monthly to $232.2 billion.
As a result, the American trade deficit in
March increased 11.6%, reaching $44.4
billion (0.2% of GDP). Although the impact
of Covid-19 on American foreign trade has
been significant, it is likely to get even worse
in the coming months.
The reason for this is the fact that the
measures adopted to deal with Covid-19 and
the closing of businesses started to be
applied around the middle of March, and it
is expected that this situation will continue
into May.
GDP, Hong Kong
In Hong Kong, social protests against the
Chinese government, as well as the recent
impact of Covid-19 have caused the Asian
economy to contract for the third
consecutive quarter.
In Q1 2020, GDP shrank by 8.9% year-on-
year, its biggest fall since quarterly
reporting began in 1974.
By sectors, foreign trade was the hardest hit
with significant falls in goods exported (-
9.7% year-on-year) and services (-37.8%).
With regard to domestic demand, private
consumption shrank by 10.2% year-on-year,
a fall that was partly compensated for by an
increase in public spending of 8.3%
year-on-year.
In the second half of 2020, a certain
improvement of the economic situation is
forecast, dependent on a relaxing of the
lockdown and trade tensions between the
USA and China.
GDP evolution, Hong Kong
YoY change (%)
Source: Círculo de Empresarios based on Census and Statistics Dept.
Hong Kong, 2020.
Quaterly GDP evolution, Eurozone
(%)
Source: Círculo de Empresarios based on Eurostat, 2020.
Foreign trade of goods and services, US
Billions of $
Source: Círculo de Empresarios based on US Dept. of Commerce, 2020.
Note: Q2 2020 Oxford Economics forecasts.