The Spanish economy shrank 0.1 percent in the fourth quarter of 2009, making Spain the last major European economy still stuck in recession, official data showed on Thursday.The national statistics agency INE said Gross Domestic Product (GDP) contracted by 3.1 percent compared to the last three months of 2008 while the economy contracted 3.6 percent overall in 2009."The global downturn is slowing," INE said, noting that the external sector was doing better while domestic demand was not as weak as before.
Good and bad news came out of the eurozone Thursday morning as Spanish unemployment rose more to the highest in at least 37 years, but Britain’s economy dodged a return to recession and grew faster than expected in the first three months of this year.
Spanish unemployment rose more than economists forecast in the first quarter as efforts to tackle the European Union’s biggest budget deficit crimped economic growth.
Inquiring minds investigating the collapse in Europe note Euro-Zone Industrial Production Declines Steeply
Industrial production in the 17 countries that use the euro fell sharply in September as weak output across both the core and peripheral economies added to expectations for a poor third quarter gross domestic product print Thursday.
Spain confirmed its timid recovery from recession on Friday with 0.2 percent growth in the second quarter but analysts warned the upturn may be short lived as austerity measures bite.On a year-on-year basis, Spanish Gross Domestic Product still shrank 0.2 percent but this was better than the contraction of 1.3 percent in the first quarter, the National Statistics Institute (INE) said in provisional data.The figures were in line with estimates published last week by the Bank of Spain. The INE will release definitive figures on August 26.
MADRID (Reuters) - More than six million Spaniards were out of work in the first quarter of this year, raising the jobless rate in the euro zone's fourth biggest economy to 27.2 percent, the highest since records began in the 1970s. The huge sums poured into the global financial system by major central banks have eased bond market pressure on Spain, but the cuts Madrid has made in spending to regain investors' confidence have left it deep in recession.
MADRID – Spain’s conservative prime minister is preparing a package of small measures — such as tax breaks for young entrepreneurs — to stimulate the economy even as he vows to stick to budget cuts.
Prime Minister Mariano Rajoy, whose popularity has plummeted after a year in the job, will announce the steps on Feb. 20 in his first State of the Union address in an effort win back public trust after severe spending cuts.
The Bank of Spain just sent a stark message. In its annual update of economic forecasts, it estimates Spain's economy will shrink 1.5% in 2013 - that is three times as bad as the official government forecast of -0.5%.