topics
tools
Expatica countries
Index Last Var.(%)
BEL 20 3083.51 0.32
DAX 9605.08 0.17
IBEX 30 10058.5 -1.04
CAC 40 4387.61 -0.20
FTSE 100 6806.86 -0.05
AEX 397.5 -0.20
DJIA 16272.65 0.46
Nasdaq 4318.933 0.63
FTSE MIB 20298.33 -0.11
TSX Composite 14214.35 0.18
ASX 5415.4 -0.10
Hang seng 22836.96 0.04
Straits Times 3110.78 0.45
ISEQ 20 836.3 0.23
EUR / USD 1.37976 0.67
EUR / GBP 0.82571 0.59
USD / GBP 0.598544 -0.10
Gold 1329.6 -0.13
Oil 108.9 -0.76
Silver 21.28 0.08
You are here: Home News Spanish News Spanish recession deepens: central bank
Enlarge font Decrease font Text size


23/01/2013Spanish recession deepens: central bank

Spain's economy took its steepest dive in more than three years in the final quarter of 2012 as high unemployment and biting austerity measures slashed demand, a Bank of Spain report showed Wednesday.

Available data pointed to gross domestic product plunging by 0.6 percent on a quarterly basis in the final three months of the year after a 0.3-percent dip the previous quarter, it said.

It marked the sharpest quarterly fall in Spanish economic output since the second quarter of 2009 when the eurozone's fourth biggest economy was reeling from a massive property crash.

Spain's economic output has been on a downward path since the final quarter of 2011, the central bank said. "Available data indicate that this intensified in the October-December period."

Demand by consumers and businesses plummeted by 1.9 percent in the fourth quarter from the previous three months, the Bank of Spain said.

The economy was hammered in part because a buying spree ahead of a September 1 sales-tax increase had evaporated in the final quarter. At the same time, public sector workers had their Christmas bonuses cancelled.

Tough financing conditions in the midst of a banking crisis and a weak labour market -- with one in four workers unemployed in Spain -- further depressed demand for Spanish goods and services.

Over the whole of 2012, the Bank of Spain estimated that economic output fell by 1.3 percent from the previous year. That was slightly better than the government's forecast for a 1.5-percent contraction.



© 2013 AFP


0 reactions to this article

0 reactions to this article

Discussion Forums

Business and Personal Finance in Spain

Mid-week currency update by UKForex

Relocation to Spain

How to get Self Employment VISA in Spain?

Relocation to Spain

sending packages to spain

Business and Personal Finance in Spain

Monday's currency update by UKForex

Business and Personal Finance in Spain

The weekly currency crunch by UKForex

participate in the forums

 
 
 
 
 
Inside Expatica
Editor's Guide: Getting Started in Spain

Editor's Guide: Getting Started in Spain

Expatica's Getting Started section will provide practical information on how you can open a bank account, exchange your driving licence, improve your Spanish, and more.

Groups and Clubs in Madrid

Groups and Clubs in Madrid

Here's a guide to an extensive list of groups and clubs in Madrid for expats, from sports groups to social and family gatherings.

Groups and Clubs around Spain

Groups and Clubs around Spain

A brief introduction to our Tax section for Spain, from help with inheritance tax to accounting advice.

Groups and Clubs in Barcelona

Groups and Clubs in Barcelona

Here's a short introduction to our Banking section for those living in Spain, from what to ask the experts to opening a Spanish bank account.