Tags: EU | Spain | Economy

Spain Hobbles Out of Recession as Economy Grows

Friday, 07 May 2010 07:26 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Spain's economy grew in the first three months of 2010, putting an end to six quarters of recession, the Bank of Spain said Friday.

Gross domestic product rose by 0.1 percent from January to March, the bank said. However, the economy remained 1.3 percent smaller than a year earlier.

The bank's assessment is provisional, based on estimates made on "available relevant data" which are due to be confirmed by the Finance Ministry next week.

On Tuesday, the Labor Ministry said unemployment fell by 24,188 in April, the first drop in eight months. A total of 4.14 million people were now claiming unemployment benefits, down from 4.17 million at the end of March.

The official unemployment rate, however, was above 20 percent for the first quarter, double the European Union average, according to the National Statistics Institute.

The bank said Spain's large budget deficit remains a concern to the European Union amid fears that the crisis over Greece's large debt load could spread to other countries with large budget shortfalls. Spain's economy is four times the size of Greece's, and last week Standard & Poor's cut Spain's credit rating from AA+ to AA.

The Bank of Spain also said the Spanish economy — which was hard hit by a collapse of the housing market — surpassed its "most acute contraction" in the first quarter of 2009.

On Wednesday the EU predicted Spain's economy would come out of recession this year.

"Its outlook features positive quarterly growth in the second quarter of 2010, partially reflecting an anticipation of consumption plans driven by the scheduled VAT rate increase on the 1st of July," the European Commission economic forecast report said.

It said that though quarterly GDP might record a technical fall in the third quarter, it would recover in the last quarter of the year.

For 2010 as a whole, real GDP is forecast to contract by one-quarter of a percent, followed by moderate positive growth of three quarters of a percent in 2011.

Spain has been the slowest of the major EU economies to emerge from recession.

Spain's overall debt stood at 53 percent of economic output last year, and its deficit was equivalent to 11.2 percent of GDP. The government has enacted a 50 billion euros ($66.22 billion) austerity program aimed at getting the deficit down to the EU limit of 3 percent by 2013.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Cowboy Poet Waddie Mitchell Pens 'Call to All' on Nevada Ranch Standoff

Sunday, 20 Apr 2014 12:52 PM

A week after a tense standoff between gun-toting states' rights advocates and federal Bureau of Land Management police,  . . .

Krugman, Liberals Fawning Over Hot New Economics Book that Gets It All Wrong

Sunday, 20 Apr 2014 11:57 AM

It's hard to think of another book on economics published in the past several decades that's been praised as lavishly as . . .

Albert R. Hunt: Obama Isn't Getting Through With the Good News

Sunday, 20 Apr 2014 11:55 AM

Here's a bit of good news for nervous Democrats: President Barack Obama's health-care law isn't going to be the albatros . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved