Spain Slips Further into Recession

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By Trey Thoelcke Published
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Spain slipped further into recession, which means that its need for aid has accelerated. Its gross domestic product for the third quarter dropped 0.3%, on top of a drop of 0.4% in the quarter before. Spain has an unemployment rate above 25%.

The awful numbers have triggered a series of undesirable issues. The first is that austerity plans will be set in place, and these will undermine growth as incomes and employment drop further and gut the tax base. This in turn will cause more budget cuts, which will damage the economy even further. Since there is no appetite among Europe’s stronger nations to supply stimulus money, that way out of trouble is blocked.

Social unrest is on the rise in Spain, as well. While the effects of this cannot be measured because no one knows how widespread they will be, strikes and protests could destabilize the current government. And people who walk off the job for a time contribute to a drop in the tax base.

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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