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
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
