spainwatch

Spain through the looking glass

Spains economy still shrinking

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The Spanish economy has just notched up its fifth straight quarter of recession.

Preliminary figures released today by Spain’s National Statistics Office (INE) reveal that the country’s economy shed 0.3 per cent of its value in the third quarter. This is slightly better than the 0.4 per cent dip seen in quarter 2.

The latest INE quarterly accounts, which meet analysts’ predictions, mean the Spanish economy was 1.6 per cent year smaller in the third quarter of this year compared with the same quarter in 2011.

Steady export figures were not strong enough to offset a 4-point drop in national demand from July to September while final household consumption expenditure slipped 2 per cent in quarter three. Demand for capital goods plummeted 7.3 per cent.

The latest INE figures also show almost 789,000 jobs have vanished in Spain in the last 12 months. The construction industry alone has suffered an almost 20 per cent fall in total full-time or equivalent jobs since Q3 2011.

The European Commission’s recent autumn forecast predicted Spain wouldn’t see GDP growth until 2014. They are predicting a 1.4 per cent decrease next year and then, in 2014, a slight gain of 0.8.

In related economic news, Eurostat also uploaded its third quarter flash estimates for Europe yesterday, showing that the 17-state Eurozone is now officially in recession again after registering a 1 per cent slide in GDP from July to September. The EU27 group fared slightly better, notching up 0.1 per cent GDP expansion for that three-month period.

According to Bloomberg, both Germany and France ‘eked out’ slight positive gains of 0.2 per cent in the third quarter period while the UK economy was one percentage point larger.

Meanwhile, the crisis at the edges of the Eurozone is starting to bite at the core with Austria recording its first quarterly GDP contraction (0.1%) since the economic crisis kicked off in 2008.

Greece remains the continent’s basket case; its economy was 7.3 per cent smaller in this year’s Q3 than in the same quarter of 2011.

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Written by georgemills25

November 15, 2012 at 18:47

Posted in business, crisis, economy, News, Spain

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