The economic performance of Spanish provinces during 2020 and its determinants

Series: Analytical Articles.

Author: Alejandro Fernández Cerezo.

Topics: Spain | Economic situation | Structural analysis.

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The economic performance of Spanish provinces during 2020 and its determinants (513 KB)

Abstract

This article presents an estimation of changes in provincial GDP over the course of 2020. The pandemic’s impact on activity has been highly uneven across Spain’s provinces, with the island provinces and those on the Mediterranean coast being the most affected. The factors that lie behind this disparity are also explored. The steepest declines in activity were associated with a greater weight of tourism – particularly inbound tourism – in provincial activity, a higher proportion of temporary employment, a lower weight for the public sector and lower levels of public mobility. However, after controlling for the effects related to mobility and economic structure, the excess mortality prompted by the pandemic does not appear to be a significant variable in explaining the cross-province differences in GDP change during 2020.