Spain has cut its growth forecasts again (or rather, experts have), which means it will ask for more time to solve its problems. And its path to a bailout from its neighbors and bond purchases by the European Central Bank become more complex. As each month passes, and the recession in Spain worsens and unemployment rises, the government of Prime Minister Mariano Rajoy is later and later in publicly admitting its problems. Newspaper El Pais reports that Spain’s gross domestic product will tick down sharply next year, and that its budget deficit will be 6% rather than the 4.5% most recently forecast.
El Pais reported that the Commission forecast a 1.5 percent decline in Spanish gross domestic product in 2013, scarcely any better than a 1.6 percent drop this year. Next year’s Commission forecast is in line with the consensus in a Reuters poll of economists taken a fortnight ago.
However, both are significantly worse than the 0.5 percent contraction expected by the Spanish government in 2013.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
