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Delta variant: Economic implications of increased contagion

15 mins.
13 JULY, 2021
fondo Delta_AER
Ignacio de la Torre
Leopoldo Torralba
Pedro Larrasquitu
Coronavirus Tourism sector Spain AER Global
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After the Spanish Government lifted nightlife restrictions in June, the cumulative incidence in Spain has grown exponentially (from 90 to 300-400 per 100,000 inhabitants), especially among unvaccinated young people. The reason is the proliferation of the Delta variant, which became dominant in July, as we forecast some time ago. Therefore, social alarm is on the rise, as is the uncertainty about its potential adverse effect on the tourist season that has just began, and on the economic recovery unfolding since the second quarter.
Which are the real factors of concern regarding the Delta variant? What are the most relevant aspects of the vaccines against this variant?
What could the impact of the foreseeable medical evolution on the Spanish economy be?
What are the risks associated with new mutations, and the possible new restrictions and confinements?

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