Accommodation and restaurants hit hardest as economy shrinks by 14.9%

The economy shrunk by 14.9% in the second quarter as many businesses closed their doors because of COVID-19 restrictions, GDP stats out today show

Shops had to limit the number of people inside to maintain social distancing requirements when restrictions were partially lifted in May
Shops had to limit the number of people inside to maintain social distancing requirements when restrictions were partially lifted in May

Gross Domestic Product (GDP) has seen a a 14.9% drop during the second quarter of 2020 compared to the corresponding period last year, or a fall of 16.2% in volume terms, according to figures released by the National Statistics Office.

All main sectors of the economy experienced widespread contractions during the second quarter that was characterised by restrictions on economic activity as a result of the COVID-19 pandemic.

The services sector saw a drop of 15.7%, largely driven by a decline of 100.2% in volume terms within accommodation and restaurant activities.

Information and communication were among the services activities that contributed positively to Gross Value Added (GVA).

Total final consumption expenditure saw a drop of 11.8% in volume terms, largely due to a 22.3% decrease in household expenditure. This was, however, offset by an increase in government expenditure and in expenditure by non-profit institutions serving households.

The export of goods and services saw a decrease of 12.8% in volume terms, while imports experienced a 7.9% drop.

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