IBERSOL | Annual Report 2020

ANNUAL REPORT 2020 Situation in Spain Recent data from the Bank of Spain indicate that the Spanish GDP dropped 11% in 2020, because of Covid-19 epidemic control measures. The Spanish economy was one of the most deeply affected since the health crisis began, namely in the tourism sector, which represents around 12% of GDP. Following a deep contraction in the first semester, activity recovered significantly in the second half of the year, although the recovery slowed after the summer, due to the need to reintroduce control measures. The recovery of economic activity after the short-term depends heavily on the speed of the vaccination programme and consequent immunisa- tion of the population. Solving the health crisis will allow for the lifting of restrictions, boosting private consumption and a enabling a gradual re- covery of international tourism flows. Forecasts point to a GDP growth of 6% in 2021 and 5.3% in 2022, in a context where lockdown measures are progressively withdrawn until the end of 2021. Situation in Angola Recent IMF data indicate that following four consecutive years of recession, the Angolan economy suffered a contraction of 4% in 2020, due to Covid-19 effects, drops in oil prices and a reduction of oil exports. Together, these three factors devastated an already weak economy that is still heavily dependent on the oil sector. The first Covid-19 containment measures were instituted in March 2020, leading to a general and abrupt drop of internal activity during the second quarter. Oil and gas production dropped 6% in 2020 and the non-oil sector began a timid and gradual recovery in the second half of the year, with a forecast of GDP recovery of 1.2% in 2021 and 2.6% in 2022. The average inflation rate remained high (22.2%) but is expected to slow progressively (19.8% in 2021 and 15% in 2022). Despite the crisis, the IMF stresses the fact that Angolan authorities achieved a prudent budget adjustment in 2020, including non-es- 11