EU commissioner: Spanish recovery will take longer
Spain's property crash means its economy will take longer to recover from the economic crisis than European neighbours France and GermanyMadrid - Spain's property crash means its economy will take longer to recover from the economic crisis than European neighbours France and Germany, EU Economic Commissioner Joaquin Almunia said Friday.
"The causes of the economic decline in Spain, and in particular the situation in the housing sector, will make the recovery slower," he told Spain's Radio Cadena Ser.
"It is not so easy as in other cases, where we go from day to night, from a very deep recession to figures of positive growth."
He estimated that the recovery in Spain could begin in 2010.
Spain entered into its first recession in 15 years at the end of 2008 and unemployment has soared as the global credit crunch worsened a correction that was already underway in its once booming housing sector.
The National Statistics Institute on Thursday said the economy shrank 1.1 percent in the second quarter, the fourth consecutive contraction and worse than the original estimate of 1.0 percent.
Both France and Germany recently announced positive growth in the second quarter.
"There is no doubt that we will emerge from the crisis," said Almunia, a former Spanish cabinet minister.
AFP / Expatica