Monthly summary of the state of the Spanish and international economy.

1. Source: Círculo de Empresarios based on INE, 2020.
General Industrial and Services Turnover, Spain
YoY change (%)
-50
-40
-30
-20
-10
0
10
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Industry Services
4.6
1
2
3
4
5
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
0
10
20
30
40
50
Jan-15
May-15
Sep-15
Jan-16
May-16
Sep-16
Jan-17
May-17
Sep-17
Jan-18
May-18
Sep-18
Jan-19
May-19
Sep-19
Jan-20
May-20
Industry and Services, Spain
In April, the General Industrial Turnover
Index fell 40.8% year-on-year as a result of
the impact of the Covid-19 lockdown
measures. This setback is the biggest since
reporting began. By sectors, the car industry
was the hardest hit (-90.4% year-on-year),
followed by the clothing industry (-80%). On
the other hand, the only sector to increase
turnover was the pharmaceutical industry
(4.9% year-on-year).
In the service sector, the General Business
Turnover Index fell 41.4% year-on-year.
Decreases in the hospitality industry
(-94.4%) and the sale and repair of motor
vehicles-motorcycles sector (-83.0%)
particularly stand out.
In terms of employment, occupation in this
sector fell 5.5% year-on-year after the
declaration of the state of emergency.
The sectors most affected were the
hospitality industry (-14.9% year-on-year)
and the administrative and support service
activities sector (-8.3%). The fall would have
been greater if companies had not applied to
Temporary Workface Reduction Scheme
(ERTE).
Government debt, Spain
The General Government debt increased
4.6% year-on-year in April (2.2 pp more than
in April 2019), to €1,234,694 million (99.2%
of GDP), a new historic maximum. By
Administrations, State debt increased 5.5%
year-on-year, to €1,098,937 million, and that
of the Autonomous Communities by 1.2% (to
€300,857 million).
For its part, Social Security increased its
indebtedness by 22.4% year-on-year
(€55,023 million).
On the other hand, Local Government debt
fell 8% year-on-year, reaching €24,228
million.
Hotel Sector, Spain
In light of the travel restrictions as a result of
the coronavirus, overnight hotel stays in
May fell 99.2% year-on-year (vs. -0.1% in
May 2019) with 259,217 in total.
Hotel occupancy fell 78.9% year-on-year (vs.
-1.2% in May 2019), covering just 12.1% of
available places. Madrid was the Autonomous
Community with the highest level of
occupancy (18.1% of the total). Between
January and May, overnight hotel stays fell
62.4% year-on-year (to a total of 42,298,121).
Economy…
at a glance June 2020
Source: Círculo de Empresarios based on INE, 2020.
Overnight hotel stays, Spain
Millions of overnight hotel stays
Government debt, Spain
YoY change (%)
Source: Círculo de Empresarios based on Bank of Spain, 2020.

2. ‘Economy at a glance’, a publication of the Círculo de Empresarios produced by its Department of the Economy, contains information and opinion from reliable sources. However, the
Círculo de Empresarios does not guarantee its accuracy and does not take responsibility for any errors or omissions. This document is merely informative. As a result, the Círculo de
Empresarios is not responsible for any uses that may be made of the publication. The opinions and estimates of the Department can be modified without prior warning.
www.circulodeempresarios.org
Singapore
Denmark
Switzerland
Netherlands
Hong Kong
Spain
…
Sweden
Norway
Canada
UAE
US
0
2
4
6
8
10
2007 2011 2017 2018 2019 2020
-0.9
0.1
0.6
-2
-1
0
1
2
3
Estonia
Luxembourg
Cyprus
Slovenia
Spain
Latvia
Ireland
Greece
Croatia
Portugal
Italy
Belgium
Denmark
Finland
Eurozone
Sweden
Lithuania
France
Germany
EU
Austria
Malta
Bulgaria
Netherlands
Romania
Slovakia
Hungary
CzechRepublic
Poland
Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20
EU 5.2 24.7 -7.5 -7.4 -55.1 -76.3 -52.2
Germany 9.7 19.5 -7.3 -10.8 -37.7 -61.1 -49.5
France 0.7 27.7 -13.4 -2.7 -72.2 -88.8 -50.3
Italy 2.2 12.5 -5.9 -8.8 -85.4 -97.5 -49.5
Spain 2.3 6.6 -7.6 -6.0 -69.3 -96.5 -72.7
0
200
400
600
800
1000
1200
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2018 2019 2020
Car sales, EU
In spite of the easing of the lockdown measures,
EU vehicle sales in May remained at significantly
low levels (581,161 vehicles). The registration of
newcarsfell52.2%year-on-yearafterplummeting
76.3%inApril.
Among the main economies of the region, Spain
registeredthebiggestfallat72.7%year-on-year(to
34,337 vehicles). In other countries, the
decreases were not so sharp, around 50% year-
on-year:
- In Germany there were 168,148 new car
registrations (28.9% of the total).
- In Italy 96,310 (16.5% of the total).
- In France 99,711 (5.9% of the total).
CPI, EU
InMay,EUCPIincreased0.6%year-on-year(vs.
1.6%inMay2019)andtheEurozoneremainedat
0.1% (vs. 1.2% in May 2019). Low inflation is
largely dueto the economic standstill asa result
of Covid-19 and the fall in energy prices.
Countries which showed the biggest decreases
year-on-year were Estonia (-1.8%), Luxemburg
(-1.6%) and Cyprus (-1.4%); on the other hand,
Poland and the Czech Republic exceeded 3%
year-on-year.
CompetitivenessIndex(IMD),2020
The World Competitiveness Ranking 2020,
drawnupbyIMD,whichmeasuresthedegreeof
competitiveness and ability to generate
prosperity of 69 economies, placed Singapore in
first position for the second year running,
followedbyDenmarkandSwitzerland.
The drop from 3rd to 10th place by the United
States for the first time in its history is
particularly notable. This development is
fundamentally explained by management of the
pandemic,thedeteriorationofthehealthservice,
social fracture within the political framework,
and the trade war (that started in 2018) with
China,whichfellfrom 14th
position to20th
.
Spain remained at its previous position of 36th
,
with unemployment regulation (59th
position)
and political instability (53rd
position) standing
outfornegativereasons. Source: Círculo de Empresarios based on IMD, 2020.
New car registrations, EU
Thousands of cars
Source: Círculo de Empresarios based on ACEA, 2020.
Source: Círculo de Empresarios based on Eurostat, 2020.
New car registrations, EU
YoY change (%)
CPI, EU
YoY change (%)
Top10 World Competitiveness Ranking 2020, IMD
Position
Evolution of US World Competitiveness Ranking, IMD
Position