Spain will be the last country in the eurozone to emerge from the crisis
| Date: November 13, 2009 | Source: Europa Press |
| Category: Economy | |
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Loading ... The European Commission held last Friday that the growth data confirm that both the EU and the eurozone out of recession during the third quarter, but warned that the impact of the economic crisis will continue in the coming months and will be shown on especially in the rising unemployment. He also reiterated that Spain will be the last country in the eurozone recovery from the crisis.
The eurozone economy recorded a growth of Gross Domestic Product (GDP) of 0.4% quarter on quarter, compared with a decrease of 0.2% in the previous quarter, according to preliminary figures released Friday by the office Community statistics, Eurostat. In the EU-27, GDP out of negative territory and two tenths increased quarter on quarter.
Although both the eurozone and the EU out of recession, Spain remained in negative territory during the third quarter, with a contraction of 0.3%. This is somewhat better than I had anticipated Brussels (-0.4%). For the full year, the Commission predicts that the Spanish economy will shrink by 3.7% and experience a further decline of 0.8% in 2010, followed by a modest recovery of 1% in 2011.
According to these projections, the Spanish economy will emerge from the recession in the third quarter of 2010, a year later that the eurozone and the EU. "Spain is expected to be the last member to enter the eurozone economic recovery," points out the monthly report on employment in the EU executive published Friday.
"We are emerging from the recession, but unfortunately we have not yet left the impact of the crisis. The impact of the crisis will be felt for some time and that will also reflect on the labor market," said the spokesman for Economic Affairs the EU executive, Amelia Torres, referring to data from the EU and the eurozone.
These data "more positive" than in previous quarters and confirm that the EU economy "back into positive territory after five consecutive quarters of negative growth." However, the spokesman insisted that the return to growth "will be gradual."
The third quarter data are consistent with the Brussels economic forecasts published last October 2. According to these projections, the EU economy will contract 4.1% this year and grow 0.7% in 2010 and 1.5% in 2011.
