Spain announced negative forecast for 2012.

Monday, 23 January 2012 04:09

The Bank of Spain lowered economy forecast for 2012 over euro area debt crisis. The estimate GDP changes from 1.5% growth to -1.5% decrease.
According to report debt crisis among euro area lowered investor’s confidence and access to bank loans in Spain, that reflects in lower inner demand.
Central Bank estimates only 0.2% GDP growth in 2013.
The bank warned also from unemployment rise. Currently jobless rate stands at 21.5%.
Estimated deficit for 2011 will probably exceed 8% of GDP. In that situation taxes rise is necessary in order to avoid Spanish bond yields increase.