Spain: Country falls back into recession

Spain: Country falls back into recession

Madrid : Spain | May 17, 2012 at 8:50 AM PDT
Views: Pending
Spain denies bailout talks

Official statistics show that the Spanish economy shrank by .3 per cent during the first quarter of 2012. While this is not a large decline it is enough for Spain to be technically in a recession after two consecutive quarters in decline.

The new figures confirm the precarious state of the Spanish economy. Spain has a record 24.4 per cent unemployment rate the highest in the Euro zone. The contraction was caused by weaker demand with lower public and household spending as austerity measures take their toll.

Weaker growth in other parts of Europe have slowed exports and also tourism. However, exports did rise by 2.2 per cent while imports fell 7.2 per cent.

. Luis de Guindos Economy Minister predicted GDP would shrink by 1.7 per cent in 2012 but grow slightly by .2 per cent in 2013. Other forecasters were less optimistic with Commerzbank analysts predicting that Spain would still be in recession next year with a decrease in GDP of .3 per cent.

Spain's deficit last year was 8.5 per cent of GDP far off the 6.0 per cent agreed to with the EU. Austerity measures are supposed to bring the amount down to 5.3 per cent this year and to the EU ceiling of 3.0 per cent next year. This may be difficult to achieve if not impossible. For more see this article.

1 of 31
Spain's Economy Minister de Guindos talks to reporters after a conference in Madrid
Spain's Economy Minister de Guindos talks to reporters after a conference in Madrid
northsunm32 is based in Brandon, Manitoba, Canada, and is an Anchor on Allvoices.
Report Credibility
  • Clear
  • Share:
  • Share
  • Clear
  • Clear
  • Clear
  • Clear

News Stories

  • Spain slides back into recession with 0.3% drop in Q1 GDP

      The Economic Times
    Spain's gross domestic product shrank by 0.3 percent in the first quarter after contracting at the same rate in the final three months of 2011, confirming a return to recession, according to final statistics published Thursday. The figures confirm...
  • Spanish recession bites, may be prolonged

      International Business Times
    Spain officially slipped in to recession in the first quarter, final figures confirmed on Thursday, leaving the country threatened with a prolonged slump as the turmoil-wracked euro zone struggles to balance austerity with growth. In the first...
  • Spain secures 30-bn-euro loan to aid local govts

      The Economic Times
    The Spanish government has secured a five-year syndicated loan of 30 billion euros ($38 billion) with 26 banks that will allow regional governments and city halls to refinance their debt and pay suppliers. The loan can be extended to 35 billion euros...
  • Spain economy shrinks as investment declines, spending sticks

      Taiwan News
    Travel & Delicacy Beauty never Ends Ecological Environment Taiwan News, Staff Writer 2012-05-17 04:55 PM Spain's economy shrank in the first three months of 2012 as investment slumped and household spending stagnated amid the harshest austerity...
  • Spain in recession amid European drama

      The Courier-Mail
    Greece installs a crisis government to tackle its crippling debt and top EU leaders prepare for crisis talks. European leaders are planning a video conference for later today, initially to discuss an upcoming G8 meeting of industrialised countries...
  • US stocks flat as Greece, Spain weigh

      The Courier-Mail
    US stocks are essentially flat in opening trade as negative news continues from Europe, with Greece's woes deepening and Spain falling into recession. Strong quarterly earnings from Wal-Mart, the world's biggest retailer, were not enough to shatter...





More From Allvoices

Report Your News Got a similar story?
Add it to the network!

Or add related content to this report

Use of this site is governed by our Terms of Use Agreement and Privacy Policy.

© Allvoices, Inc. 2008-2014. All rights reserved. Powered by PulsePoint.