The Bank of Spain predicts that the deadly floods that struck the country at the end of October could slow economic growth by 0.2 percentage points in the fourth quarter of 2024. This was announced by the head of the Bank of Spain, José Luis Escrivá.
According to Escrivá, the 78 municipalities affected by the disaster account for about 2% of the country’s economy. He noted that in the flooded regions, economic activity will slow down in the short term due to the destruction of infrastructure and production capacities. For example, in Valencia, nearly 2% of the workforce has been temporarily suspended.
In the third quarter, Spain’s economy grew by 0.8%, driven by an increase in exports and domestic consumption, surpassing the central bank’s forecasts. According to the latest government estimates, which did not take the flood’s consequences into account, Spain’s GDP is expected to grow by 2.4% in 2024.
As of the latest reports, 214 people have died from the floods in eastern Spain, and thousands of homes have been destroyed. Efforts to manage the aftermath of the disaster have been ongoing for three weeks.
