Arab Today, arab today spain sees no need for more cuts as recession deepens
Last Updated : GMT 19:15:07
Arab Today, arab today
Arab Today, arab today

Spain sees no need for more cuts as recession deepens

Arab Today, arab today

Arab Today, arab today Spain sees no need for more cuts as recession deepens

Madrid - AFP

Spain said yesterday no new measures were needed to rein in its public deficit after official data showed its biting austerity measures in 2012 helped push the country deeper into recession. The euro zone’s fourth largest economy shrank by 1.4 percent year-on-year in 2012 as households slashed spending, the national statistics institute said. That was a slightly better performance than the decline of 1.5 percent forecast by the government. But gross domestic product contracted 0.8 percent in the final quarter of 2012, the steepest decline since the second quarter of 2009 and more than double the 0.3 percent fall posted in the previous three-month period. The figures were slightly bleaker than preliminary data released last month by the statistics institute which saw the economy falling by 0.7 percent in the final quarter on a quarterly basis and by 1.37 percent for the entire year. Spain is grappling with a double-dip recession and 26 percent unemployment, prompted by the collapse of a decade-long property boom in 2008. Prime Minister Mariano Rajoy’s conservative government forecasts the economy will return to growth in the second half of 2013. It predicts an economic contraction of 0.5 percent in 2013 followed by an expansion of 1.2 percent in 2014, a more optimistic forecast than those of most analysts and international organizations. Activity appeared to be cramped by spending cuts and tax rises, aimed at saving 150 billion euros ($ 194 billion) between 2012 and 2014, which have prompted mass street protests. The economic contraction in the fourth quarter was caused mainly by a fall in domestic demand, the national statistics institute said. Consumer spending fell 1.9 percent while government expenditure dropped 0.3 percent. The government has vowed to lower the public deficit from the equivalent of 9.4 percent of gross domestic product last year to 2.8 percent in 2014. Analysts say those targets will be hard to reach in a period of declining economic activity. But Budget Minister Cristobal Montoro said Spain does not need new measures to rein in its spending shortfall in 2013 even though the country slightly missed its targets for the shortfall last year. “There is no need for new cutbacks,” he told a news conference. Spain’s overall public deficit reached 6.74 percent of GDP in 2012, compared with a target agreed with the European Commission of 6.3 percent, he said. The public deficit of Spain’s 17 powerful autonomous regions stood at 1.73 percent of GDP last year, compared to the target of 1.5 percent. “I insist that what we achieved is really big, important, really notable and it will help Spain and its regional governments recover their credibility,” Montoro said. Other official data released yesterday offered signs of economic strengthening. Spain’s inflation rate remained unchanged at 2.8 percent in February compared to January after declining from October, the national statistics institute said in a separate report. The country’s current account deficit meanwhile plunged by 78 percent in 2012 to 8.3 billion euros from 37.5 billion euros in the previous year as rising exports helped slash its trade balance, the Bank of Spain said. It was the third consecutive yearly fall in the current account deficit following declines of 17.8 percent in 2011 and of 18.2 percent in 2010. Spain ran up the world’s second-biggest current account deficit during the housing boom up to 2008. In December Spain posted a current account surplus of 4.9 billion euros, compared with a current account deficit of 3.9 billion euros during the same period a year earlier.

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 sees no need for more cuts as recession deepens Arab Today, arab today spain sees no need for more cuts as recession deepens

 



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

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner

GMT 05:53 2017 Saturday ,25 February

Global sovereign debt to hit new all-time high

GMT 05:17 2017 Saturday ,25 February

Oil world cautious on Trump’s next move

GMT 09:59 2017 Friday ,24 February

Baidu revenue slips anew amid ad clampdown

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal
View News in Arabic - Business: نفط وبتروكيماويات
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