High Unemployment Stalls Spanish Economic Recovery
Madrid, Spain (AHN) – Spain’s weak economic recovery stalled in the third quarter, according to data from Spain’s National Statistics Institute.
Preliminary figures for the gross domestic product (GDP) from July to September shows it unchanged from Q2. In addition, GDP for the year was only up 0.2 percent over the past year.
The National Statistics Institute says the slowdown was indicative of a lower national income. That is hardly surprising given Spain’s 20 percent unemployment rate. High unemployment has resulted in lower consumption and less consumer spending has led to little growth in the economy.
However, healthy exports meant the news was better than analysts had expected.
Spain has instituted austerity measures to try to curb the government budget deficit. However, one of the measures, wage cuts of 5 percent for government workers, will likely result in further weakening consumer spending as government workers will have less money to spend.
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