The Spanish economy will cope despite the devastating floods in Valencia

Spain just suffered the worst natural disaster in decades. The government has announced a €10.5bn aid package in response to the scale of the human and material losses. In this report, we attempt to assess the impact of this disaster in terms of growth, inflation and public finances. With a provisional death toll of 219 and an unknown number of missing people, the human toll is of course the first and most serious consequence. Although this will be of little comfort to those affected, we believe the negative economic effects will be temporary and limited .