Castilla y León reduces the rate of recession in the third quarter of the year




The economy of Castilla y León continues in a “recession phase”, but it does so at a lower rate than in the last period. The GDP of the Community, as detailed this Friday by the Minister of Economy and Finance, Carlos Fernández Carriedo, stands at -5.5 percent. Far is -18.8 from the previous quarter, when the “worst data in history with a double-digit drop” was recorded due to the economic slowdown resulting from the pandemic.

Although the economic situation «improves» compared to the last quarter, Castilla y León will take time to recover the figures it handled in 2019. «We are expected to start 2021 in recession. There may be a slight recovery in the second quarter of the year. Of course, starting to grow does not mean recovering what we have lost, “explained the counselor, who has been very cautious in his forecasts. According to Carriedo, the Community could recover in 2021 “three quarters” of what was lost during the pandemic. “Until 2022 we will not have a GDP comparable to that of 2019,” he has settled.

That the economy has fallen less in this period is due to the improvements shown by the primary sector and energy products. The latter, who were the ones that suffered the most during 2019 due to weather conditions, have improved by 12.1 percent in this last quarter. Something similar happens to agriculture, forestry and livestock, which has grown by 9 percent. For its part, construction, which continues in negative numbers (-8.2%), has improved the 24.5 percent drop that it suffered during April, May and June. “After the state of alarm, many reforms were made at home and that has helped the sector that most noticed the economic stoppage,” Carriedo said.

Finally, the Minister of Economy and Finance has analyzed the figures from the demand side and pointed out that the economy suffered above all the collapse of domestic consumption and investment, partially offset by the contribution of the foreign sector and the spending of public administrations. Specific, Carriedo has detailed that final consumption spending fell 4.3 percent in this third quarter, due to the 6.8 percent reduction in household disbursements and the 3.2 percent increase in public administration items “in Education and Health to face the pandemic.”

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