Tags: Spanish | Economy | Expands

Spanish Economy Expands, Slowly Emerging From Recession

Friday, 06 Aug 2010 08:27 AM

Spain's economy took a further step out of recession by growing in the April-June period, the second consecutive quarter of expansion after nearly two years of recession, the Bank of Spain said Friday.

The central bank said gross domestic product was up 0.2 percent from the previous quarter. GDP rose by 0.1 percent from January to March.

However, the economy remained 0.2 percent smaller than a year earlier.
Spain is the slowest of the major European Union economies to emerge from recession and prior to January it had sustained six quarters of negative growth.

The news came a day after the European Central bank said economic growth in the eurozone is on course to be better than anticipated in both the second and third quarters, a further sign of optimism about the 16-nation bloc's prospects.

The Spanish bank's assessment was provisional and is to be confirmed by the government next week.

It was the third piece of positive economic news this week for Spain after the number of people claiming unemployment benefits fell by nearly 74,000 in July, the fourth monthly reduction in a row.

Spain's overall unemployment rate still stands at just over 20 percent, the
highest in the 16-country eurozone.

On Thursday, Spain sold bonds at a lower interest for the third time in a row, indicating increasing investor confidence following approval of an austerity program of euro15 billion in spending cuts and labor market reforms.

Stress tests released last month also showed Spanish banks to be in good shape.

On Friday, the Bank of Spain said the government's measures were "adequate" but warned they needed to be fully applied and quickly. It added that the government should consider further fiscal measures to ensure reduced spending next year.

Socialist Prime Minister Jose Luis Rodriguez Zapatero has pledged a lean budget for 2011, with average spending cuts of 15 percent in government ministries.

The EU has said Spain's economy may register negative growth once again in the third quarter because of government measures.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 
1Like our page
2Share
Economy
Spain's economy took a further step out of recession by growing in the April-June period, the second consecutive quarter of expansion after nearly two years of recession, the Bank of Spain said Friday. The central bank said gross domestic product was up 0.2 percent from...
Spanish,Economy,Expands
334
2010-27-06
Friday, 06 Aug 2010 08:27 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved