Spanish economy will again contract this year: EU

13th September 2010, Comments 0 comments

Spain's struggle to get back on the road to economic recovery was brutally highlighted on Monday, with new European Union forecasts tipping another year of contraction.

"Economic activity in 2010 is forecast to decline by 0.3 percent following a fall of 3.7 percent in the previous year," the European Commission said, by way of contrast with a 1.7 percent rise for the eurozone as a whole.

Citing falling private consumption, weak investment and an "ongoing adjustment in the housing sector," it warned of falling public investment due to national budget cuts.

© 2010 AFP

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