Arab Today, arab today central bankspanish recession keeps tight grip
Last Updated : GMT 22:10:16
Arab Today, arab today
Arab Today, arab today

Central bank:Spanish recession keeps tight grip

Arab Today, arab today

Arab Today, arab today Central bank:Spanish recession keeps tight grip

Madrid - AFP

A job-destroying recession kept a tight grip on Spain in the third quarter of 2012 when output shrank by an estimated 0.4 percent, the Bank of Spain said on Tuesday. If confirmed, the figures would mean that the Spanish recession, which has left one in four workers unemployed, is moving into a second year at a relentless pace. The eurozone\'s fourth-largest economy, which emerged from the last recession only at the end of 2010, began gently shrinking in mid-2011 and has slumped in every quarter since by as much as 0.5 percent. According to the Bank of Spain, available but as-yet incomplete data for the second quarter point to gross domestic product declining at a quarterly rate of 0.4 percent, the same pace as in the previous three months. \"The Spanish economy continued on a path of contraction which began a year earlier,\" the central bank said in a monthly report. Spain has already agreed a 100-billion-euro ($125 billion) rescue loan for its banks, of which it plans to use only 40 billion euros. World markets now anticipate a broader bailout, after the European Central Bank in early September outlined plans to make unlimited bond purchases to bring down stricken states\' borrowing costs. Investors are wary of betting against the European bank, which could step in as soon as Spain decides formally to request help from the eurozone\'s bailout fund and to submit to its conditions. Largely as a result of that threat, Spain\'s Treasury beat its fund-raising target in an auction of three- and six-month bills on Tuesday, raising 3.58 billion euros. Rates of return edged up for the three-month bills and eased for the six-month bills from a similar auction September 25. But signs of an enduring recession will be discouraging to Prime Minister Mariano Rajoy\'s right-leaning government, which has forecast an economic contraction of just 0.5 percent next year. Bank of Spain governor Luis Maria Linde this month described that forecast as \"certainly optimistic\" in the light of private forecasts centred on a 1.5-percent economic slump. Madrid\'s 2013 economic forecast, viewed with scepticism on the financial markets and by international institutions, serves as the basis for its 2013 budget promises. Spain missed last year\'s public deficit target by a wide margin, ending 2011 with a shortfall equal to 9.4 percent of economic output instead of the promised 6.0 percent. This year, it has promised to lower the overall deficit to 6.3 percent of output, but already Madrid has been forced to admit that the cost of a banking sector rescue will push the gap to 7.4 percent. Budget Minister Cristobal Montoro said the central government deficit, which excludes the shortfall racked up in Spain\'s 17 regional governments, amounted to 3.9 percent of GDP in September. That was \"very close\" to the 2012 central government deficit target of 4.5 percent of GDP, he told parliament. The performance of Spain\'s regions will thus be crucial to reaching the overall 6.3-percent target. Next year, Spain\'s government is targeting an even more ambitious public deficit equal to 4.5 percent of GDP. But if the economy shrinks by 1.5 percent in 2013 then the public deficit will likely miss the target by 0.3 percentage points of GDP, the central bank has warned. The Spanish government is boosting taxes and slashing spending to meet the deficit goals, provoking growing street protests and a union call for a general strike November 14. But the recession is making its task ever harder, for example by raising the cost of unemployment benefits. In its latest monthly report, the Bank of Spain said employment fell at about the same pace in the third quarter as it had in the second quarter, when jobs declined at an annual rate of 4.5 percent. The economy might have fared even worse but for a consumer spending spree on goods such as washing machines and televisions ahead of a September 1 increase in the sales tax, the bank said. But the end of that burst in spending, plus a decline in public sector salaries, could mean weaker consumer spending in the final quarter of this year, it warned. As people struggled to make ends meet, household savings rates fell to the lowest level since 2006 in the second quarter, the bank said.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today central bankspanish recession keeps tight grip Arab Today, arab today central bankspanish recession keeps tight grip

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday