Spain is going to recession too
In the third quarter of Spain's economy has giot narrower for the first time since 1993 till today, leading to fears that the country has entered into recession, which will be confirmed in negative growth in Gross Domestic Product during the last quarter of the year. The Spanish economy got narrower by 0.2 percent compared with growth of 0.1 percent in the previous quarter, according to data published today by the Central Bank, Bloomberg reported.
Annual economic growth was 0.9 percent, the Spanish Institute of Statistics will publish the first official revisions of expectations for growth of GDP for 2008 and 2009 on Nov. 13. Today the main Spanish Ibex 35 stock index fell by 13 of it last week because of fears that the global financial crisis will affect economic growth in Latin America that are the subject of a major investment of Spanish companies. Ibex this year has fallen by 42 percent this year, while manufacturing activity in the country decreased for the 10th consecutive month in September. Global economic slowdown eroded foreign investment and economic activity in the country and resulted in millions of unsold properties and a decline in employment in the sector. Because that unemployment in Spain has increased to 11.3 percent, the highest in the EU. The European Commission expects Spain to enter into recession this year, along with Germany and Britain, according to estimates published on September 10.
Labels: Financial News
posted by Zoritza Petrova @ 11:35 PM
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