Spain's deputy prime mininister says Catalonia faces an "economic recession" if the secession standoff continues in the northeastern region.
Soraya Saenz de Santamaria says that if there is no immediate solution and Catalan separatists drop the independence bid, the government will consider lowering the growth forecast for the overall Spanish economy for 2018.
Around 40 Catalan banks, multinationals and mid-size businesses have moved their registered addresses out of the troubled region. The move is so far mainly symbolic and has limited economic impact because it doesn't involve relocating offices, jobs or assets.
But the deputy prime minister says that investment in Catalonia is falling and, citing industry sources, she said the tourism sector in the region has seen business drop between 20 and 30 percent in the past month.