Spain sinks deeper into recession in third quarter…(Amerika’s Right Behind You!!)
Spain has slipped deeper into recession as the financial crisis and austerity weighs on the embattled country’s economy.
By Angela Monaghan
30 Oct 2012
The Spanish economy shrank by 0.3pc between July and September, marking the fifth consecutive quarter of contraction.
Spain is buckling under the pressure of a large deficit and a property crash that has left its banks struggling under a mountain of bad loans.
Swingeing spending cuts and tax rises have stifled investment and have left consumers without the money or the will to spend.
The third-quarter data from Spain’s national statistics office was a first estimate of GDP with no detailed breakdown. Despite the decline, it reflected a slightly better performance than the 0.4pc fall in GDP economists had predicted.
However, economists said the figure was likely to have been flattered by consumers bringing forward purchases to beat the VAT rise in September, partly veiling a weak consumer backdrop.