Madrid - Spain recorded a historic fall in GDP in the second quarter of the year, with the 18.5% drop wiping out all the post-financial crisis recovery of the last six years, data from National Statistics Institute showed on Friday. The contraction, worse than the 16.6% expected by analysts, came after a 5.2% drop in the first quarter, dragging the country into its steepest recession ever, at a record pace.
On an annual basis, the economy shrank by 22.1%, versus a 4.1% contraction in the previous quarter. Spain had been growing for 24 quarters in a row until the first quarter, and was beginning to fully recover from the 2008 financial crisis. The government has forecast a contraction of 9.2% in 2020, surpassing the fall during Spain's 2008-2013 financial crisis, and has said it expects 6.8% growth in 2021.