The economy plummeted 10.8% in 2020 but did not grow in the fourth quarter

The National Institute of Statistics has reviewed the GDP data and moderates the annual rate by two tenths but points out that there was no progress in the last three months

The National Institute of Statistics (INE) has reviewed the 2020 Gross Domestic Product (GDP) data, and there have been significant changes. On the one hand, the agency points out that the economy actually collapsed two tenths less than what it had estimated in its advance data: the fall was 10.8% instead of the 11% initially indicated.

And on the other, and perhaps more important to understand the current context, GDP did not grow four tenths in the last quarter of the year but, in reality, remained flat. “It registers a variation of 0.0% in the fourth quarter of 2020 compared to the previous quarter,” he explains.

This is very relevant because it shows that the economy already entered without growth this year, which explains and affects the negative behavior that GDP is registering in the first quarter of the year. The Bank of Spain, for example, estimates that between January and March there will be a contraction of the economy.

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