Arab Today, arab today spain central bank warns of sluggish growth
Last Updated : GMT 12:00:06
Arab Today, arab today
Arab Today, arab today

Spain central bank warns of sluggish growth

Arab Today, arab today

Arab Today, arab today Spain central bank warns of sluggish growth

Madrid - AFP

Spain\'s economy is showing anaemic growth in the third quarter, the central bank warned on Wednesday, undercutting government hopes for a modest recovery. Spain\'s weak economy and towering 20.89-percent unemployment rate are a serious concern for world markets, which fear Madrid will struggle to erase the red ink in its accounts and pay off its long-term sovereign debt. Analysts said the latest figures cast in serious doubt the government\'s target for growth of 1.3 percent this year. \"The data available for the third quarter of the year show generally lethargic activity,\" the Bank of Spain said in a monthly economic report, noting in particular that shoppers are closing their wallets. On a quarter-to-quarter basis, Spain\'s economy grew 0.4 percent in the first three months of 2011 and only 0.2 percent in the following three months, official data show. When compared to the same period last year, growth in the second quarter was just 0.7 percent. The overall picture cast doubt on the government\'s target of 1.3 percent growth for 2011 overall and threw into peril its promises to cut the deficit so as to regain investors\' trust, analysts said. \"The government\'s growth forecasts are not realistic, for this year nor the next. They will be impossible to achieve,\" said analyst Soledad Pellon, at trading group IG Markets. \"If the government\'s growth forecasts are not fulfilled, the deficit targets probably won\'t be either, which is more important.\" The central bank, the International Monetary Fund, Standard & Poor\'s and major bank BBVA have all forecast much lower economic growth of 0.8 percent for Spain this year. Unlike Italy, Portugal and France, Spain\'s Socialist government has declined to lower its own forecasts ahead of a November 20 general election, widely expected to hand power to the conservative opposition. The government\'s spokesman Jose Blanco on Friday said Madrid maintained its growth targets but acknowledged that \"in a new and difficult climate, they will be difficult to achieve.\" Analyst Jesus Castillo of Natixis bank, forecast that Spain would fall into recession with negative growth in the last quarter of 2011 and the first quarter of 2012, and weak 0.4 percent growth for 2012 overall. The slower growth would make the government\'s goal of reducing the annual deficit to six percent of gross domestic product in 2011 from 9.24 percent in 2010 \"difficult to achieve,\" Castillo added. The government releases official third-quarter economic growth figures in mid-November just before the election. \"They will not have to answer when the real figures come out,\" Pellon said. \"They are leaving it to the next government.\" Spain enjoyed a decade of strong growth driven by a property bubble that burst in 2008, combining with a global financial crisis to throw the economy into recession. Though the economy has stabilised since, financial instability in Greece has raised new doubts about sovereign debt in fragile eurozone economies, including Spain\'s. Spain is suffering from high unemployment and cuts to social spending, which are beginning to bite. Exports including tourism are the main driver of economic growth, latest figures show.  

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 spain central bank warns of sluggish growth Arab Today, arab today spain central bank warns of sluggish growth

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
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