During the second quarter of 2020, the impact of Covid-19 has generated an unprecedented economic crisis, due to the typology and the high uncertainty it generates for all sectors of society. The health effects, the declaration of the state of alarm, restrictions on mobility, the closure of borders and the complete paralysis of some economic activities have generally affected the entire development of the economy and society worldwide.
KEYS
The tourism sector has been greatly affected by the Covid-19 situation in economic terms, since since it is considered a non-essential activity and the free movement of people, and therefore tourists, is prohibited, its activity has been completely paralyzed since the second half of March. The opening of borders begins at the end of June and, therefore, the arrival of the first tourists and the subsequent opening of some hotels on the islands. But still in a very reduced way.
FORECASTS
Given all these considerations, if we take into account the most likely economic growth prospects in the Canary Islands Hotel Expectations Survey July 2020 based on different probabilistic forecasts that Corporación 5 has made, the average scenario being considered is that it is estimated that, on average in 2020, the GDP in the Canary Islands may decrease by 25.05%, reaching an unemployment rate of 36.45% due to the evolution of the active population.
REPORT
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