Reply #35: Bank of Spain forecasts zero growth for the third quarter [View All]

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http://www.typicallyspanish.com/news/publish/article_32511.shtml

The Bank of Spain has forecast zero growth in Spain’s GDP for the third quarter and warned that, despite all the adjustments made, this could result in Spain not meeting her deficit target for this year.

The Bank is clear to point out that the information available is ‘still partial and incomplete’, but it does indicate that the economy has stagnated because of the cuts in public spending. National demand was down 0.7% on the quarter, pulled lower by a lack of investment in construction and the reduction in public spending.

The bank’s report says that a the weak income from taxes is putting the austerity plan in danger, and says that more adjustments to meet the undertakings given with the EU would be indispensible.

It notes ‘small advances’ in the spending of homes and businesses, and notes too that house prices have fallen 18% since the start of 2008.

Read more: http://www.typicallyspanish.com/news/publish/article_32511.shtml#ixzz1cSJg2ZC3