Span­ish growth may not be enough to help job­less

Kathimerini English - - Business & Finance -

MADRID (AFP) – Spain should see sec­ondquar­ter growth of 0.3 per­cent, the same as the pre­vi­ous three months but not enough to curb the high­est un­em­ploy­ment rate in the in­dus­tri­al­ized world, a study said yes­ter­day. “The Span­ish econ­omy is slowly re­cov­er­ing, al­though we do not ex­pect to see pos­i­tive net job cre­ation un­til the sec­ond half of 2011,” the re­search depart­ment of Spain’s BBVA bank said. The Span­ish econ­omy slumped into re­ces­sion dur­ing the sec­ond half of 2008 as the global fi­nan­cial melt­down com­pounded the col­lapse of the once-boom­ing prop­erty mar­ket. It emerged with mea­ger growth in early 2010. Eco­nomic out­put ex­panded 0.3 per­cent in the first three months of 2011 when com­pared to the pre­vi­ous quar­ter. But the cri­sis has sent the un­em­ploy­ment rate soar­ing to 21.29 per­cent in the first quar­ter of 2011, the high­est in the in­dus­tri­al­ized world, and has whipped up na­tion­wide demon­stra­tions against the gov­ern­ment’s aus­ter­ity mea­sures. The gov­ern­ment has fore­cast growth of 1.3 per­cent in 2011 and 2.3 per­cent in 2012. But BBVA Re­search pre­dicted fig­ures of 0.9 per­cent this year and 1.6 per- cent next year, “enough to gen­er­ate net jobs, but not enough to sig­nif­i­cantly re­duce the un­em­ploy­ment rate, given a nor­mal sce­nario for la­bor force per­for­mance.” the first, 110-bil­lion-euro ($161 bil­lion) res­cue for debt-laden Greece last year. But the euro area’s sec­ond-poor­est state did sign up for the Euro­pean Fi­nan­cial Sta­bil­ity Fa­cil­ity (EFSF), the tem­po­rary fund es­tab­lished to bail out later vic­tims of the re­gion’s debt cri­sis. (Reuters)

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