Catalunya referendum could lead to recession, fears Bank of Spain

THE Catalan crisis could see Spain’s economic forecast slashed by 60%, bank chiefs have warned.

Bank of Spain bosses also believe fears over independence for the region may send Catalunya into recession.

The worse-case scenario would cut €27 billion from Spain’s economic growth over the next two years, the bank said in its November report.

A ‘severe and prolonged’ crisis would cut 2.5% from Spanish GDP by 2019.

There are ‘significant risks and economic costs’ to the Catalan crisis, the bank warned.