Spanish Economy: Is it becoming worse?

[mumuy]

Previously, the economy of Spain deepened into contraction to a 2.0% after reported 1.9% contraction in the fourth quarter of 2012. Surprisingly, the recession eased in the first three months of 2012, despite the government’s step on the austerity program with spending cuts to return to fiscal health amid intolerably high unemployment rate. Household recovered to 0.4% drop from a decline of 1.9% in the last quarter of 2013. Yet, the drop deepened on the yearly basis where it fell by 3.9% as compared to its 3.0% a year ago. In addition, exports slumped by 1.3% in the first quarter from 0.9% drop in the fourth quarter of last year, imports on the other hand advanced to 1.7% loss from a drop of 4.8%.

However, the focus in Spain’s fledgling economy wanes, after it accepted ECB’s bailout. Now, it seems that Spain’s economy is worse than previously expected, as another recession is looming over Spain. An interesting topic related to this has been made by paxforex. What’s your view about this?

More details:

http://www.voanews.com/content/spain-says-its-economy-is-worsening/1649740.html

http://www.bbc.co.uk/news/business-21258272

http://planet.infowars.com/politics...t-continues-to-increase-and-recession-worsens

http://www.paxforex.com/forex-blog/state-of-spanish-economy-is-worse-than-thought

 

[Rambo35]

I think Spain has really struggled and continues to do so. The Spanish economy may be reason enough to flare up the debt contagion all over again. Spain may have to request a formal bailout as soon as next year.

 

[Enivid]

I doubt it will get much worse than it currently is. With socialists out of office, I believe that current government will be able to handle the crisis.

 

[Megamind]

I don't think that Spain will repeat Greek scenario. At least the EU not supposed to let it do so.