Spain’s Hope for GDP Growth Diminishes

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By Trey Thoelcke Published
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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.

Reuters reports:

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

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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