Spanish economy can weather global downturn: PM

6th September 2007, Comments 0 comments

6 September 2007, MADRID - (AFP) - The Spanish economy is strong enough to weather the turbulance that has hit global markets in recent weeks due to the crisis in US mortgages, Prime Minister Jose Luis Rodriguez Zapatero said Thursday.

6 September 2007

MADRID - (AFP) - The Spanish economy is strong enough to weather the turbulance that has hit global markets in recent weeks due to the crisis in US mortgages, Prime Minister Jose Luis Rodriguez Zapatero said Thursday.

"It is now that it will really show its strength," he told reporters during a visit to the Madrid headquarters of Santander, Spain's largest bank.

The Spanish economy "is growing and will continue growing" and will produce a budget suplus this year and in 2008, he said.

"This is another strength to help face up to the turbulance of the markets and the economy," Zapatero added.

In July Spain's Socialsit government, which is facing a general election next March, raised its economic growth forecast for 2007 to 3.8 percent from 3.4 percent previously.

Spain's gross domestic product (GDP) expanded by 3.9 percent in 2006, fueled in large part by a boom in the contruction sector which is showing signs of cooling.

Spanish unemployment jumped by nearly 58,000 in August as the building industry cut payrolls and surpassed the symbolic two million mark which was seen by analysts as a sign that an extended period of growth was ending.

By comparison the number of unmeployed grew by just under 29,000 in August 2006.

[Copyright AFP with Expatica]

Subject: Spanish news

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