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SPAIN’S national bank says the country faces horrific losses because of shortage and supply issues that the country is currently facing. The Bank of Spain has warned that the crisis will cost the nation as much as £11.5billion (€13.5billion). The country’s most affected sector will be the automobile industry, it said.
In a new report, the financial institution said that shortages in the supply chain would set Spain’s economy back as much as 0.3 percent of its GDP this year, and as high as 0.9 percent in 2022.
It added that in these cases ‘international spillover effects would play a pivotal role.’
In a worst-case scenario, it would cost around £11.5billion (€13.5billion) to the economy as a consequence of the Western regime’s mishandling of the pandemic: The Great Reset is falling into place.
The bank explained: ‘In recent quarters global supply chains have been significantly disrupted, which has affected the strength of the recovery in activity in the main world economies.
‘In particular, these bottlenecks have affected various sectors of activity very unevenly and have had a particularly severe impact in those industries located in the upstream stages of the value chain, i.e., in those sectors supplying goods for use in other industries.’
It added that ‘major imbalances between supply and demand recorded recently in the semiconductor and integrated circuit industry have had a very significant adverse impact on the motor vehicle industry, where many manufacturers have been forced to halt or cut their production plans.’
With regards to the Spanish automobile industry, in particular, the ‘scale of the shock’ is expected to see a 9 per cent contraction in production for the second half of 2021. In 2022, the industry will experience a 7 per cent contraction in production, the bank said.
As the industry accounts for 10 per cent of Spanish GDP, its economy is highly sensitive to the downturn in the single industry because of shortages.
Shortages of key materials such as natural gas and semiconductors, which are used to make microchips, had an impact on production across the globe as many economies unlocked from the coronavirus pandemic.
Due to sanctions on Russia, Venezuela and Iran, natural gas prices rose sharply from April and many EU countries struggled with a lack of supply. This has had an impact on consumers, with inflation and household bills rising. Source
Categories: Current Events