Firms/ households cut back on investment and consumption, causing a slump in economic activity, precipitating a recessionary cycle. Moreover, since the loans were securitized and sold to other investors as credit derivatives, the defaults in the mortgage lending market spread to the wider credit markets, multiplied several-fold by leverage.
The tourism sector, which accounts for an estimated 26% of real output, has significantly exceeded expectations when compared to initial forecasts for the first half of 2021. This recovery is expected to continue over the medium-term and support the recovery of other economic sectors. Other important sectors of the economy continue to rebound as well.