Published on Friday, June 5, 2020

Spain | Catalonia sees an unprecedented and heterogeneous fall in consumption

The drop in household spending is unprecedented. BBVA's credit card spending data went from an increase of around 10% in Catalonia before the state of alarm to a drop of almost 60% following its implementation.

Key points

  • Key points:
  • Families in Catalonia all but stopped spending in bars and restaurants, leisure, accommodation, travel agencies, etc. This was only partially offset by increased food spending which has rocketed by 60% since the second half of March.
  • The situation in the labor market is having an important effect on household expenditure — the number of people affected by a Temporary Employment Plan (ERTE) or by unemployment could reach around 28% of Catalonia's workforce.
  • The gradual easing of confinement measures should improve economic activity. In fact, following the transition from phase 0 to phase 1, the reduction in credit card spending moderated by 19 pp in Catalonia.
  • Going forward, the key will be how effective the exit strategy is at limiting contagion, while GDP recovers.

Documents to download


Has this information been useful?

New comment

Be the first one to add a comment

Load more

You may also be interested in